Many modern cars come with a built-in modem that keeps them connected to the internet. That connectivity allows everything from unlocking the car with an app to receiving maintenance alerts, and it also opens the door to insurance based on how you drive.
What is a connected car?
It’s a vehicle capable of sending and receiving data over a mobile network. Through the manufacturer’s app, the owner can see the location and fuel or battery level, lock the doors, turn on the air conditioning remotely and receive alerts.
What is telematics?
Telematics is the remote collection of vehicle data: speed, acceleration, braking, mileage, times of use, fault codes and location. This data can come from the car itself or from a device plugged into the OBD port.
Usage-based and behavior-based insurance
- Pay as you drive: you pay according to the miles driven. Ideal for those who rarely use the car.
- Pay how you drive: the price takes your driving style into account. Careful drivers can get significant discounts.
- Stolen vehicle recovery: tracking makes it easier to locate the car and can lower the insurance price.
Maintenance benefits
- Service alerts based on the vehicle’s actual use.
- Remote diagnosis of faults before they get worse.
- Over-the-air (OTA) software updates on some models.
- A digital history that increases the car’s resale value.
Privacy: what to keep in mind
- Read the terms of use of the app and the insurance policy to know what data is collected and who it’s shared with.
- Check the settings to see which services you can turn off.
- When selling the car, unlink your account and erase personal data from the infotainment system.
- Use strong passwords and two-factor authentication in the manufacturer’s app.
Conclusion
Connected cars offer convenience, more safety and the possibility of paying fairer insurance. In return, they generate a lot of data. Enjoy the benefits, but stay in control of your information.