What is Connected Car Insurance? | Insurance Telematics
What is Connected Car Insurance?
Connected car insurance is a technology-driven automobile insurance leveraging the Internet of Things (IoT) whereby insurance premiums are dependent on driver behavior. Connected car insurance programs are intended to reward and promote safer and smarter driving behavior, while enabling auto insurance customers to receive potential discounts and savings to their monthly premiums based on individual driving patterns calculated by their insurer of choice.
How Does Connected Car Insurance Work?
Today, many insurance carriers are offering connected car insurance by providing the driver with a physical device (OBD II) that plugs into their vehicles agnostic system, or by a mobile application that is run through a smartphone. Both have the ability to record data about driving behaviour and send the information to the insurance provider. In some instances cars are already equipped with OEM connected car systems, such as GM’s OnStar.