Telematics rewards good drivers who are careful and diligent by tracking their speed, cornering, and braking. Airdrie motorists with no claims history and a good driving record could save even more should telematics become available in Alberta.
What is Telematics?
Telematics is the blending of computers and wireless communications. Canadian Underwriter believes it could be the answer to eliminating generalities in insurance and "put an end to age and gender discrimination". By tracking an individuals driving habits, insurance companies would be able to charge appropriate premiums for that person based upon a number of factors. Some of which include speed, cornering, braking, distance traveled, the time of day you're traveling and other related factors that could affect your insurance rates.
What does this mean for your Family?
If you're a person who is a diligent driver with safe driving habits and a clean driving record it could mean much lower premiums for you. Especially if you fall into a demographic that is generalized as being "high risk" in our current insurance system.
Young drivers could benefit greatly from this program, especially 16-25 year old drivers. We could expect to see a significant decrease in their insurance premiums should telematics be brought to Alberta.
Effective vehicle tracking technology in Alberta would make this data available to the driver so that they could adjust and address their driving behaviour accordingly and, effectively, have some control over their insurance premiums.
Below is an example of what is currently offered in Quebec and Ontario.
However, most Albertans aren't familiar with telematics and "Pay as You Drive" insurance. From those polled, 6 out of 10 drivers surveyed said they would be willing to try such a program to save money on their auto insurance premiums. Sixty-one per cent of Canadians believe they would indeed pay less for auto insurance, but two-thirds say that it would take more than $100 per year in auto insurance savings to entice them to switch.