An automobile can be a person's greatest exposure.

And, as State Auto progresses into the future with the rest of the auto insurance industry, it’s important to embrace all technological innovations designed to protect our customers when they are at their most vulnerable. After all, why wouldn’t we want to utilize every tool that could potentially create better drivers?

Whether or not you’ve used the technology, you may still have questions. What exactly is telematics? Where did it come from? What has been accomplished using the technology?

Sometimes, the best way to know where we’re going is to know where we’ve been. Check out this timeline that depicts the tale of telematics and its role in the auto insurance industry.

Telematics /ˌtɛlɪˈmætɪks/ noun: the branch of science concerned with the use of technological devices to transmit information over long distances
Dongle /ˈdäNGɡəl,ˈdôNG-/ noun: a small device able to be connected to and used with a computer, especially to allow access to wireless broadband or use of protected software

What does this mean?

In most telematics programs, drivers are offered an automatic discount for participating. If collected data shows safe driving habits, additional discounts can be added to the driver’s policy. However, according to this announcement, the insurance company now intends to charge drivers extra money on their policies if telematics data shows “aggressive” driving habits.

This information is provided for general guidance and does not represent any statement or interpretation of the law as it applies to particular situations or to individuals and should not be considered a substitute for specific legal advice.

Sources

"Allstate Expands Drivewise to 16 States, Adds Smartphone App." Insurance News and Analysis for Risk Managers, Agents, Brokers, P&C Insurance Pros. N.p., n.d. Web. 19 Apr. 2016.

"CORDIS Archive:CORDIS : TAP for Transport: History of the Deployment of Transport Telematics." CORDIS Archive: CORDIS: TAP for Transport: History of the Deployment of Transport Telematics. N.p., n.d. Web. 19 Apr. 2016.

"Definition of "telematics"" Google. N.p., n.d. Web. 19 Apr. 2016.

"Original Document: EP0700009 (A2) ― 1996-03-06." Espacenet. N.p., n.d. Web. 19 Apr. 2016.

"Patent US5797134 - Motor Vehicle Monitoring System for Determining a Cost of Insurance." Google Books. N.p., n.d. Web. 19 Apr. 2016.

"Progressive Auto Insurance - An Introduction." Progressive® Insurance Launches Pilot Snapshot Mobile App. N.p., n.d. Web. 19 Apr. 2016.

"Progressive Auto Insurance - An Introduction." Progressive Snapshot Reaches 10 Billion Mile Mark. N.p., n.d. Web. 19 Apr. 2016.

"Progressive Auto Insurance - An Introduction." Progressive Snapshot Reaches 10 Billion Mile Mark. N.p., n.d. Web. 19 Apr. 2016.

"Progressive Auto Insurance - An Introduction." Progressive Snapshot Reaches 10 Billion Mile Mark. N.p., n.d. Web. 19 Apr. 2016.

"Progressive Using Snapshot to Add Surcharge for Aggressive Drivers." Chicagotribune.com. N.p., n.d. Web. 19 Apr. 2016.

"Smartphone App Helps Set Insurance Discounts." Automotive News. N.p., n.d. Web. 19 Apr. 2016.

"Smartphone App Helps Set Insurance Discounts." Automotive News. N.p., n.d. Web. 19 Apr. 2016.

"Smartphone App Helps Set Insurance Discounts." Automotive News. N.p., n.d. Web. 19 Apr. 2016.

"Surviving Transformation." Google Books. N.p., n.d. Web. 19 Apr. 2016.

"Telematics History And Future Predictions - Telematics, Insurance & Uses Of Telematics Technology." Telematics.com. N.p., 30 May 2013. Web. 19 Apr. 2016.

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