Telematics Car Insurance: The Secret Weapon to Stop Distracted Driving

Distracted driving -- such as texting while driving, looking at a phone while driving, filming a TikTok video while driving, or otherwise taking your eyes off the road and your hands off the wheel -- is a major cause of car crashes. At its worst, distracted driving can be deadly.

According to data cited by the Insurance Institute for Highway Safety (IIHS), in 2021, 3,522 people died in motor vehicle crashes where distraction was a contributing factor. Of these deaths, 377 came from crashes that were caused partly by cellphone use. The 2023 Travelers Risk Index survey found that 70% of people believe that distracted driving is more of a problem now than it was before the COVID-19 pandemic.

Along with the tragic loss of human life and serious injuries caused by drivers who can't stop fiddling with their phones, distracted driving is also causing car insurance premiums to surge. When more distracted drivers are on the road, plowing into other vehicles and creating mayhem, that ultimately drives up car insurance costs for everyone.

Fortunately, some of the best car insurance companies are working on this problem. A new type of car insurance, called "telematics," can help you avoid distracted driving -- while saving money on car insurance. Let's look at a few reasons why telematics car insurance might just be the best solution to stop distracted driving.

Distracted driving is all too common -- and hard to stop

People's smartphones have become central to their everyday lives. For most of us, our phone is the most important thing we own. (I would rather lose my wallet, or even my car, than lose my phone; the wallet and car would be easier to replace.) It feels all too natural to stay glued to our phones, even when we should be doing something else.

When phones are so crucial to people's productivity, social lives, and everyday sense of connectivity to the world, it's no wonder that so many people are tempted to keep texting and posting, even while at the wheel. The Travelers Risk Index 2023 found that distracted driving is all too common:

• 80% of drivers admit to making or receiving calls while driving
• 57% admit to using handheld devices while at the wheel
• 28% said that they sometimes post social media updates while driving
• 27% admit to taking photos or videos while driving

But even though distracted driving is common, there are opportunities to change people's behavior in a positive way. Many states have passed laws to make it illegal for people to use electronic devices while driving. But laws can be hard to enforce and easy to ignore.

What if there was a better way to stop distracted driving? People often respond better to incentives ("carrots") than they do to punishment and threats ("sticks"). What if, instead of punishing people for using their phones, we could reward people for not using their phones in the first place?

People want rewards to stop distracted driving

The Travelers Risk Index survey also asked people what it would take to help them stay focused behind the wheel and stop distracted driving. People overwhelmingly wanted financial incentives:

• 83% said they would respond well to a financial reward for not using the phone while driving.
• 82% said they would like an auto insurance discount to stop distracted driving.

The good news is: car insurance companies are well-positioned to offer these kinds of financial rewards. This is what telematics car insurance does best! With telematics car insurance, drivers can sign up for a special insurance program that uses mobile tracking devices to monitor their driving and share their driving data with their insurance company. If your driving data shows you're a safer driver (with slower acceleration and braking, less driving at night, and other factors), you can get a car insurance discount.

Different insurers have different telematics plans, but some of the best insurance companies offer mobile apps with data tracking technology to help stop distracted driving. Let's look at one of the leading examples: State Farm.

State Farm Drive Safe and Save™ -- telematics insurance to stop distracted driving

State Farm offers a telematics insurance program called Drive Safe and Save™ that lets you use a mobile app to share your driving data with the company. This insurance program tracks a few different types of driving behavior, such as how often you break the speed limit, how rapidly you accelerate, brake, and turn corners, and how often you are affected by phone distraction.

The State Farm Drive Safe and Save™ app checks for distracted driving by monitoring if your vehicle is moving, if your phone is moving within the vehicle, and if your phone screen is on. In this way, State Farm offers an extra driver safety feature to keep you focused at the wheel. And depending on your driving behaviors, the State Farm Drive Safe and Save™ program can help you get a car insurance discount of up to 30%.

Bottom line: It's understandable that people are reluctant to put down their phones, even while driving. But distracted driving is a threat to human life and safety, and a cause of escalating car insurance costs. Car insurance companies like State Farm are now offering advanced safety features through telematics car insurance programs and mobile apps. Telematics car insurance programs like these can help you avoid distracted driving -- and give you financial rewards for keeping your hands off your phone, and your eyes on the road.