Although insurances are primarily designed to address the emergency financial needs in cases of accidents it does not mean that you must make claims once in a while. Auto insurances are not licenses for you to feel invincible on the roads and take recklessness a way to get hold of your money through your insurer.
If you do not file any claims for a particular period of time your insurance company can actually lower your premium rate through their “no-claim” discounts. Filing no claims means you have not been involved in car accidents which in turn entails you have been successful in observing proper driving behavior. If you are just dealing with your personal car and you or a family member as the driver, monitoring driver’s driving behavior can be easy however having several cars or trucks is another story.
If you own a business using commercial vehicles to operate of course you must have car insurance coverage for your rides just like with your personal vehicle. Also similar with your own car you must avoid as much as possible any involvement with any sort of accidents. However unlike dealing with just your personal car, your commercial vehicles are driven not by you personally thus monitoring driver’s behavior is out of the picture.
Luckily today, this is no longer a problem for an emerging technology called telematics can address this monitoring need. Every move of the driver can be observed with this newest technology. It works much like the global positioning system where a device is connected to the car’s monitor. The device will then transmit information like a loose engine belt, the car’s location, and pressure on the breaks and other such information to the software operated in an office computer. Using this technology coaching drivers on what to do can be done.
According to the study done by the Virginia Tech Transportation Institute behavioral coaching combined with onboard safety monitor can reduce risky driving events. This significant reduce in risks taking is what property-casualty insurers and companies are after that is why they see this technology to be highly beneficial.
If you are one of the people who make use of several vehicles for business purposes having telematics can really serve some benefits. Aside from being able to monitor your drivers’ behavior on the road and being able to guide them through “coaching” you can also earn discounts from auto insurers with installing telematics on your vehicles.
