New Insurance Trends in CT: How Telematics is Changing How Insurers Pay Out in Car Accidents
You’ve seen the commercials. Plug a small device into your car or use an app on your phone, and in exchange for sharing your driving data, your insurance company promises a discount. This technology is called telematics, and it’s rapidly changing the landscape of car insurance in Connecticut.
But what happens when the promise of a discount collides with the reality of a car accident claim? Is this technology your friend, or is it a tool the insurance company can use against you?
At Ventura Law, we stay ahead of the curve on the tactics insurance companies use to reduce their payouts. We believe you have a right to understand how this new trend could affect your family.
What Exactly is Telematics?
Telematics, also known as Usage-Based Insurance (UBI), involves placing a small device in your vehicle or using a smartphone app to track your driving habits. According to the Insurance Information Institute, these programs are becoming increasingly common as insurers look for more personalized ways to assess risk.
These systems collect a massive amount of data, including:
- Your driving speed
- How quickly you accelerate
- Instances of “hard braking”
- The time of day you drive
- Your location and mileage
The idea is simple: prove you’re a safe driver and get a lower premium. But after an accident, the data is no longer just about a discount. It becomes evidence.
The Promise vs. The Peril of Sharing Your Driving Data
Insurance companies market telematics as a win-win. But when it comes time to pay a claim, the data can be interpreted in ways that benefit the insurer, not you.
The Promise: A Discount for “Safe” Driving
The sales pitch is compelling. If you don’t speed, slam on your brakes, or drive late at night, you can save money. However, this comes with a trade-off regarding your personal data. The National Association of Insurance Commissioners (NAIC) provides consumer resources to help drivers understand this exchange of information for potential discounts.
The Peril: How Your Data Can Be Used Against You
The problem is that raw data lacks context. An insurance company’s algorithm can easily misinterpret a safe, defensive action as a sign of risky driving.
Imagine this scenario: you are driving safely on the Merritt Parkway when another car cuts you off. You slam on your brakes to avoid a collision. The telematics device doesn’t see the other car; it only registers a “hard braking event” and flags you as an aggressive driver.
After an accident, an insurance adjuster could use this data to argue that you share fault for the collision, even when you did everything right. As experts at Zendrive have noted, while telematics is a powerful proxy for risk, it can be used to more individually assess risk in a way that may not tell the whole story.
Telematics Data as Evidence in a CT Car Accident Claim
It’s crucial to understand that if you use a telematics device, the data it collects is likely discoverable evidence in a lawsuit. The term “discovery” refers to the formal process of exchanging information between the parties in a legal case, as explained by Cornell Law School’s Legal Information Institute. The insurance company will certainly use it to build their case, but that doesn’t mean it only helps them.
A skilled Connecticut car accident lawyer can turn the tables. We can demand the same data and use it to prove your case. We can show that you were driving at or below the speed limit just before impact, or that your route was consistent and safe. We can provide the context that the raw data is missing.
Your Rights as a Connecticut Driver with Telematics
You have rights. An algorithm’s interpretation of your driving is not the final word. The Connecticut Insurance Department is the state agency responsible for regulating insurance companies, and they have rules in place to protect consumers.
- Data Requires Context: A “hard braking event” is not automatically a sign of fault. It can be a sign of a responsible driver avoiding a hazard created by someone else.
- You Are Not Required to Interpret the Data: You should never agree to a recorded statement where an insurance adjuster asks you to explain a specific data point without legal counsel.
- Your Data is Only One Piece of Evidence: The police report, witness statements, and physical evidence from the crash scene are all critical pieces of the puzzle that we use to build a comprehensive case.
The use of this technology is evolving, and as noted by Insurance Business Magazine, the full effect it will have on the industry is yet to be seen. That’s why having an attorney who understands the technology is so important.
What to Do if You’re in an Accident with a Telematics Device
- Do Not Admit Fault. Stick to the facts of what happened.
- Do Not Offer to Share Your App Data. Do not discuss your driving data with the other driver or the insurance adjuster.
- Contact an Attorney Immediately. Before you give any statements or sign any documents, speak with a lawyer who understands how this data can be used.
Ventura Law: Navigating the Future of Insurance Claims
Insurance technology is getting more complex, but our mission remains simple: to fight for the rights of the injured. We know how to challenge an insurance company’s interpretation of telematics data and use it to your advantage.
If you’ve been in a car accident in Connecticut and are concerned about how your insurance company might use your driving data, don’t face them alone. Contact our team for a free, confidential consultation.