Telematics holds the potential for improved safety and lower claimsBy Dawn Mortimer | February 1, 2017
Americans drove a combined 3.1 trillion miles over 12 months through March 2016. With drivers traveling more miles, the potential for accidents increases. The National Safety Council reported that in 2015 “the U.S. had the highest one-year percentage increase in traffic deaths in half a century.”
What if insurers didn’t wait until an accident occurred to get involved? It’s possible for insurers to be proactive about accident prevention and driver safety. By pairing telematics data with proactive services, automobile claim costs (averaging $3,493 for property damage and $17,024 for bodily injury1) could be brought down.
With data captured by their vehicles, consumers can be alerted to issues about the way they drive, as well as their vehicle’s condition. If insurers provide this feedback, they’ll engage drivers and make their policyholders feel confident that they’re insured by the best company for them and their family. The result of such an effort would be the reduction of both the frequency and severity of claims. Insurance companies leveraging telematics will provide their customers better service and help them drive smarter. When insurers are instrumental in reducing claims and increasing safety, everybody wins.