According to the Insurance Bureau of Canada, telematics first made its way into the world of auto insurance in 2013. Many car insurance providers today will offer a discount to drivers who agree to use telematics as part of their policy agreement — either by installing a small device somewhere under the dashboard or by downloading a mobile app. Your insurance company will then be able to collect information about your driving habits and provide discounts accordingly.  In this sense, telematics acts as a sort of spy for the insurance company. It can relay how aggressively you accelerate, brake, and whether or not you signal before making a lane change. Your insurance provider can then use this information to determine your rate and coverage.  Telematics programs are optional in the world of car insurance. When it comes to determining your premiums, an insurance provider considers a slew of factors, including where you live, your gender, and your driving history. This information can result in premiums that seem higher than they should be for otherwise “good” drivers. Using telematics can allow for an evaluation of your individual driving habits in order to result in a fairer premium.  Some insurance companies offer usage-based insurance policies (also known as “pay-per-mile insurance”). Telematics can provide a more accurate means of tracking your mileage for these types of policies as well.