What You Need to Know About Telematics

Telematics Privacy Concerns

Telematics may be leading to serious privacy concerns in the home.

When telematics were introduced over 10 years ago, they made a huge impact on the auto insurance industry. These usage-based insurance models have started to make their way across policy lines into various homeowners insurance policies. While this may seem like good news, it is leading to serious privacy concerns.

Four of the leading home insurance companies have announced that they have made deals with companies that provide “smart” products for homes in the past year. These products help monitor and control some major appliances in your home, which can lead to a discount on your insurance premiums. In exchange for your discounted rates, your insurance company will acquire data on how you live.

As long as these devices are installed with permission and complete transparency on the insurance company’s side, they can help to make homes safer. There is, however, the potential for serious intimacy and privacy issues.

According to a 2014 study from Deloitte, about half of insurance policyholders have a negative view of telematics, especially  older consumers. Despite the negative view, the demand for telematics devices continues to grow. People are constantly looking for ways to drop their insurance costs, and telematics devices could be the answer.

Telematics devices can also give homeowners the opportunity to reduce the risks their family faces. Being able to monitor your home will allow you to trigger specific alerts for potentially dangerous situations.

For more information on telematics, and how they may help to keep your home safe while lowering your homeowners insurance costs, contact CorMarc Insurance Services in Murrieta, California. We will work with you to ensure you are able to find the right amount of coverage that will fit your specific needs, all at the right price to fit your budget.