Their data-driven model enables accurate pricing and promotes safer driving behaviour
Car insurance in India has traditionally relied on fixed factors such as the vehicle’s make, the policyholder’s location, driver profile, and claims history. However, technology is revolutionising this space—one of the most significant developments being telematics-based insurance. This innovative approach personalises premiums based on actual driving habits rather than generic risk profiles.
With the rise of smart vehicles and Internet of Things (IoT) technology, telematics is transforming how people buy car insurance in India. This data-driven model not only enables more accurate pricing but also promotes safer driving behaviour.
Let’s delve into how telematics is reshaping comprehensive car insurance in India.
What is Telematics?
Telematics merges telecommunications and informatics, enabling real-time data collection from vehicles. Using GPS, onboard diagnostics (OBD), and wireless communication, telematics systems monitor and transmit driving data such as:
This data is analysed by insurers to assess risk and determine premiums. Unlike traditional insurance methods—heavily reliant on historical claims and demographic data—telematics offers a dynamic, individualised pricing model based on actual driving behaviour.