What Is a Telematics Device?

A telematics device is an instrument that records information about your driving behavior, including how fast you drive, how hard you brake, and the distance you drive. It's installed in your car. 

Insurers use telematics devices in special safe driver programs, including Snapshot from Progressive, Drive Safe & Save from State Farm, and SmartRide from Nationwide. Commercial fleet operators also use telematics devices to track vehicles and monitor safe driving behavior. 

But you don't have to be a professional truck driver or interested in saving money to benefit from a telematics device. Some offer also information about your vehicle's health and suggest routine maintenance.

1. Insurance savings: Provided you are a good driver, you can get a hefty discount on your insurance when the device reports your travel history.
2. Safe driving reminders: If you aren’t a great driver, an insurance-provided telematics device can help you remember to avoid hard braking, heed the speed limit, and drive safer overall.
3. Monitoring teen drivers: Some parents use the GPS feature in telematics devices to make sure their teen drivers aren't going anywhere off-limits or going over the speed limit.
4. Commercial fleet logistics: Telematics devices play a crucial role in commercial fleet logistics by tracking the vehicle's location and speed.

In some cases, yes. We've seen car insurance companies shift away from telematics devices and toward smartphone apps for their safe driver programs. The apps tap into the phone's GPS system and accelerometer to measure speed, hard braking, and rough acceleration. 

Some of these apps can also tell you how often you use your phone when you're behind the wheel, helping you become aware of distracted driving habits. On the downside, though, the apps can't give you vehicle maintenance reports. 

Telematics devices are just one element of a safe driving plan. You can also make your car more secure by adding aftermarket safety devices, like dash cams or car theft prevention products.

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