What Is Telematics Car Insurance, and Why You Might Hear More About It in 2024

Telematics car insurance: What is it?
With traditional car insurance policies, premium prices get calculated based on where you live, your driving history, the age, the make and model of your vehicle, and a few other factors beyond your control. If your state or city tends to have higher rates of car crashes, or if car repairs are especially expensive where you live, your car insurance premium will be more expensive.

As a driver, most of these factors that go into your insurance premium are beyond your control. Even if you're a safe driver who doesn't drive very often, you have to pay a fixed rate for insurance. Your insurance costs might be higher than your safe driving record deserves, based on the overall costs of fixing a car in the community where you live.