Insurance Telematics Infographic
Insurance telematics is different from traditional car insurance. It can be more efficient and beneficial for drivers.
This type of insurance looks over your driving habits to define the insurance rate. That’s why telematics insurance gets other names, such as usage-based insurance and pay-as-you-drive insurance.
In that case, your driving skills and habits should be excellent. Having good records on your driving journey will make you save more.
The Benefits
Insurance telematics gives excellent benefits for both insurers and customers.
For insurers, it can help them:
- Improve customer acquisition costs
- Reduce claims costs and fraud
- Increase customers’ life-time-value
For insurance customers, they can:
- Get better rates for safe drivers
- Reduce risk and better assistance
- Get fringe benefits
Customer Acquisition
Insurance telematics has reciprocal relationships between insurers and customers.
Insurance companies want low-risk customers, while drivers want low insurance premiums.
Insurers should get access to potential clients and learn about their risks. Insurers can reduce customer acquisition costs and select better drivers.
Drivers have the opportunity to learn their driving style and improve it to get better pricing.
Proposition and Services
Insurance companies want fewer incidents and claims. On the other hand, drivers wish to better deals and additional services.
Some of the benefits of having insurance telematics are:
- Usage-based insurance/pay how you drive
- Automatic crash notification
- Stolen vehicle tracking
- Smart assistance
- Kasko on Demand
Retention
Insurance companies want to lower their customers’ churn rate. They prevent harm, increase customers’ loyalty, and make their customers become their advocates.
Meanwhile, customers want a “daily partner” instead of an “opponent” when reporting a claim. They can also get incentives from insurance companies.
Moreover, customers can issue a driving certificate when they decide to sell their cars. It can increase the vehicle’s value and assure the new buyer of the deal.
Closing
Insurance telematics can be a good shift from traditional car insurance, especially for good drivers that have small numbers of accidents.
This type of insurance can also encourage drivers to improve their driving ability and habits, which is vital. You can discover more about Insurance telematics in the infographic below.
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