T-E-L-E-M-A-T-I-C-S, the future of auto insurance

Telematics defined as a method of monitoring cars, trucks, equipment and other assets by using GPS technology and on-board diagnostics (OBD) to plot the asset's movements on a computerized map.

If you aren't familiar with the term, you soon will be. The reason, the majority of auto insurance carriers use some form of telematics in computing your insurance premium. If you're willing to, in most instances, download a smart phone app and share your telematics data with your insurance company you might be in for a sizeable insurance discount, especially if you're a good driver.

How does one define a good driver, you might ask? It applies to someone who is not braking hard, accelerating quickly, driving less miles as well as attentive to your surroundings while driving. All of these factors can figure into an insurance savings of 25-40%. Pretty remarkable, huh?

While telematics has been around in the commercial world for more than a decade for tracking fleet vehicles, its relatively new to consumers. What telematics data is provided to the insurance carrier helps better assess the driver behind the wheel and provide a more accurate insurance rate.

So, the next time you ask your agent, how can I save more on my auto insurance? Chances are the remark will be something to the effect of, "has anyone told you about telematics."