Telematics Insurance at a Glance
Up to 30%
Maximum savings possible
5-10%
Average discount earned
App or OBD
Two tracking options
Step 1: What is Telematics Insurance?
Telematics insurance (Telematik-Tarif) tracks your driving behavior and rewards safe driving with discounts. It is also called "Pay How You Drive" insurance.
Smartphone App
Download the insurer's app, which uses GPS and sensors to track your trips. No hardware needed.
OBD Device
Plug a small device into your car's OBD-II port. More accurate than apps but requires hardware.
How It Works
Your driving data is analyzed to create a score. Higher scores (safer driving) mean bigger discounts. Most insurers recalculate your premium monthly or annually based on your score.
Step 2: What Affects Your Score?
Your driving score is calculated from several factors. Here is what matters most:
| Factor | Weight | What They Measure |
|---|---|---|
| Braking behavior | High | Smooth braking vs. hard stops |
| Acceleration | High | Gradual vs. aggressive acceleration |
| Cornering | Medium | Gentle curves vs. sharp turns |
| Speed compliance | High | Staying within limits |
| Time of driving | Medium | Day vs. night/rush hour |
| Mileage | Low | Total kilometers driven |
Tips for a High Score
- - Brake early and smoothly, avoid hard stops
- - Accelerate gradually, not aggressively
- - Drive during daylight when possible
- - Maintain steady speeds, avoid constant speeding up/slowing down
Step 3: How Much Can You Save?
Savings depend on your driving score. Here is what you can expect:
Smooth, defensive driving. Rarely brakes hard.
Generally safe with occasional aggressive moments.
Room for improvement. Hard braking common.
Aggressive driving. Some insurers may increase premium.
Warning: Low Scores Can Cost More
Some telematics policies can increase your premium if your score is poor. Check the terms - some only offer discounts without penalties, which is safer.
Compare Telematics Insurance
Find telematics policies that reward safe driving. Save up to 30% on your premium.
Compare Car Insurance NowStep 4: Privacy and Data Protection
Many people worry about privacy with telematics. Here is what you should know:
Protected by GDPR
- Data used only for premium calculation
- Cannot be shared with third parties
- You can request data deletion
- Opt-out usually possible
Things to Consider
- Location tracking (where you drive)
- Time tracking (when you drive)
- Constant monitoring while driving
- Opting out may lose discounts
In Claims Situations
Some people worry telematics data could be used against them in a claim. German law limits this, but read your policy terms carefully. In most cases, data can only be used for premium calculation.
Step 5: Is Telematics Right for You?
Good Fit If You...
- - Drive calmly and defensively
- - Mostly drive during daytime
- - Want to prove safe driving as a newcomer
- - Are comfortable with data sharing
- - Drive fewer than 15,000 km/year
Maybe Not If You...
- - Drive aggressively or in rush hour
- - Often drive late at night
- - Value privacy highly
- - Drive in stop-and-go city traffic
- - Do not want to monitor your phone battery
Try Before You Commit
Some insurers let you try telematics for a few months before committing. This way you can see your driving score and potential savings without being locked in.
Frequently Asked Questions
Does the app drain my phone battery?
Yes, running GPS constantly does use battery. Most apps use 5-15% per hour of driving. Consider a car charger or choose an OBD device instead.
What if I forget to start the app?
Most apps auto-detect driving. If you forget manually, some trips may be missed. Too many missed trips could affect your score accuracy.
Can other drivers use my car with telematics?
Yes, but their driving affects your score. If family members or friends drive differently, it could lower your score. Some apps allow you to mark trips driven by others.
Is telematics good for young drivers?
Often yes. Young drivers typically pay high premiums due to lack of experience. Telematics gives them a way to prove safe driving and earn discounts faster.
Summary: Your Telematics Checklist
- 1Assess your driving style - telematics rewards calm, smooth driving
- 2Compare telematics policies - look for discount-only (no penalties) options
- 3Choose app or OBD device based on your preferences
- 4Review privacy terms and understand data usage
- 5Monitor your score and adjust driving habits if needed