Telematics are becoming more widely used across the insurance industry every day. As a result, many consumers have begun to wonder what these systems can really do for them. If your insurance company has suggested using a telematics system to help you manage your premiums, it's normal to be hesitant. However, your insurer's telematics system can actually bring you many benefits that you might not have considered. Here's a look at a few things it might do for you.

Cut Your Insurance Costs

The very same reason that many drivers are hesitant to opt for telematics is the same reason that it could ultimately help you with your insurance premiums. The fact that these units report real-time driving habits back to your insurance company might make you uneasy, but it can be a benefit in terms of the cost of your premiums.

Instead of having to rely on your driving record alone for your risk assessment, your insurance company can use real-time data to see how you drive. If you're a safe driver, this could ultimately lead to greater safe driving discounts. Many insurance companies are instituting discounts and rewards for this to encourage consumers to use the system and drive safely.

In addition, with real-time telematics systems, your actual mileage will help you to reduce your costs in some cases. Some insurance companies offer a pay-as-you-go plan for insurance premiums that set the rate per mile driven, so the less you drive, the less you pay. If you only go out for errands and children's activities, this could save you significantly.

Emergency Response Improvement

In the case of insurance companies with real-time call centers monitoring the telematics, you can also improve the response time and notification of emergency services in the event of an accident. The unit will notify the insurance company's call center immediately about an accident, and they can call emergency services for you. In addition, the data from that system can help you in the event of a car accident lawsuit, as it will track your speed, location, and braking data.

As you can see, telematics can actually be a benefit when it comes to managing your insurance costs and your safety on the road. With the information here, you'll be able to better consider whether or not this type of system is going to be right for your driving habits. Talk with your insurance company today about the possibility of getting a telematics unit installed in your car.