Telematics Insurance: Advantages and Disadvantages of Telematics insurance

When I first learnt about black-box auto insurance I was rather excited as it could help me cut down on my car premium. But as I learnt more about what all is recorded by telematics box, I got bit wary and wondered if it benefits to have telematics box fitted in my car.

Today I would be sharing my views on pros and cons on Telematics – Black Box Insurance.

Advantages of Telematics Insurance

  1. It is good for young drivers. As we discussed in factors affecting car insurance rates, young drivers usually get an unfair deal because they lack driving history and are considered high risk group by insurers. Young drivers who are responsible can benefit from having a box fitted in car which demonstrates to the insurer that they are responsible behind the wheel.
  2. If you drive during off-peak hours you will get rewarded.
  3. Black-Box helps find stolen cars as well as it reports to the insurer in case of accident. In case of accidents, black box can also help determine who was responsible for it as its recording can be yours in legal proceedings.
  4. If you drive less and hardly take your car out for a ride you stand to gain under this policy. Many of us have a car which we take out only at special occasions, in that scenario a usage based insurance will be beneficial.
  5. Having a device monitoring your driving activity all the time can be scary, but it does helps in cultivating good driving practice.

Disadvantages of Telematics Insurance

  1. It is not good for long distance drivers. In case you have to ply long distances often for work and other activities, telematics recording will not be in your favour and car insurance might get expensive for you as compared to normal car policy.
  2. Drivers who are already considered safe e.g. middle aged individuals with good driving history won’t stand to gain much under black box insurance policy.
  3. Breach of privacy is an issue which still needs to be addressed properly. Having extra pair of eyes monitoring you is not something everyone is comfortable with and can be stressful for some.
  4. Typically, the payback period for telematics device ranges from 6 months to a year.
Personally I have gained from getting black-box device fitted in my van and buying a telematics policy as compared to my traditional auto policy, do let me know your views and experiences in comment section.

Read More:
Different Types of Car Insurance
Short term or Temporary Car Insurance for 1-28 days

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Telematics Insurance or Black Box Policy | Car Insurance Policy

Drivers around the world are looking for ways to cut down on auto insurance prices but because of the old traditional factors considered by insurers to calculate insurance quotes there is limited scope as to what a driver can do. (Read about the factors that affect your car insurance quotes).

Telematics Insurance or Black Box Auto Insurance policy takes into consideration these old factors but at the same time uses modern technology to accurately calculate the risk associated with each individual driver. This benefits a responsible driver in a great way as he is not punished for factors beyond his control viz. age, gender, place of residence etc.

What is Telematics and how it works?

Under telematics or black-box car policy, your auto insurer installs an app on your smart mobile or will install a device under the dashboard of your car to record your driving pattern. This devise uses satellite telemetry to read your driving habits and then transmits it to insurer’s database. Typically a telematics device contains a SIM card, GPS, accelerometer and proprietary software of insurer which analyses the data and sends the report back.
Wondering what all is recorded by telemetric blackbox? Parameters that a black box records are customized by each insurer as per their discretion but some of the common things they measure are:
  1. How many miles you log in on an average,
  2. At what time you drive,
  3. Roads you usually ply on,
  4. Traffic conditions when you are on road,
  5. How often you brake and how hard you apply brakes,
  6. Your average speed,
  7. Do you follow speed limits and
  8. Number of breaks you take while on long journey.
All this data is analysed by your insurer to calculate your car insurance risk. Beyond the obvious this device also helps to locate a stolen car or to identify if car has met with an accident.

Read More about benefits of UBI or usage based insurance

Finally it can be said that if you are a safe driver then telematics policy will reward you and will help you get the cheapest possible auto quote.

Next read pros and cons of telematics insurance.

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10 Factors That Affect Your Car Insurance Premium

Yes we all hate buying auto insurance and keep wondering as to how we can save money on car insurance or extract a discount from the insurance agent. In order to get a fair deal in auto insurance market you need to understand what factors affect your car insurance premium and how to control some of them to your advantage.
Insurance premiums are calculated on the basis of risk parameters perceived by insurer and having knowledge of them will help you take an informed decision without compromising on necessary coverage.

Statistical Factors that determine your auto quote

  1. Your Age and Gender
    It has been observed that young male drivers have been involved in higher rates of car accidents. Due to more vulnerability of this demographic group, premiums charged by insurers will be higher. At the same time old males usually have lower premium rates as compared to old women drivers.
  2. Your Marital Status
    Married individuals generally have lower rate of accidents as compared to singles, some may argue with the facts but sense of responsibility does plays a factor here.
  3. Your Profession
    Professions which involve remaining on road for long duration attract higher premiums. Also the profile of job matters here, for example a doctor or police officer is generally considered to be more responsible in his driving habits and thus gets a better quote.
  4. Your area of residence
    In case you live at places where theft, vandalism or accidents occur frequently then your premium amount will shoot up. Also city drivers usually have to cough-up more premium than their rural counterparts. In U.S. Philadelphia and Detroit have the most expensive auto insurance rates because of the high traffic and large number of uninsured drivers on the road.
  5. Type of Vehicle to be covered
    Cars with better safety mechanism in place command less premium thus take note of safety rating of the car before buying it. At the same time cars that are driven by young drivers attract more premium because statistically insurers receive more claims on those particular models. Car with powerful engine are more likely to be involved in costly accident thus sports car incur higher insurance costs.
  6. Age of Car
    Old cars usually have lesser premiums because in case of total damage or significant damage, drivers are mostly likely to opt for dumping it and buying another vehicle. Repairing old car can be more or equally expensive than buying a new car. Whereas in case of new cars, drivers like to go for repairs thus they end up making more claims to insurers, thus high premium.

  7. Personal Factors that influence your auto insurance premium

  8. Your Driving Record
    It pays to be responsible driver, a good driving history can go a long way in reducing the auto insurance burden. Although you can’t change your history but remaining cautious over the period of years can be beneficial to you in long run. Note a DUI ticket can leave a blemish on your history for upto 10 years.
  9. Your Credit History
    You may feel that your credit risk has nothing to do with auto coverage but in reality it is a very important parameter considered by insurers which fixing your rate. A responsible citizen with good credit scores is less likely to file claims. (Read more about How Credit Cards Affect Your Credit Score ).
  10. How much you drive and where
    In case you don’t take your car for a ride often then the possibility of accidental claims is less thus it will benefit you. At the same time if you drive a car at accidental prone roads then your auto quote may increase. ( Read about Pay-As-You-Drive Insurance or Usage Based Insurance)
  11. Type of Coverage You Opt-for
    Depending on the legal obligations and your risk perception you may go for various types of car insurance like third-party, comprehensive, theft, etc. More coverage translates to higher auto quote.
Read More :
Temporary Auto Insurance for 1 -28 days

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Test Plan and Test Strategy | Difference and What are they

Software testing is the most important activity which determines the success of software project and the success of testing activity is determined by robustness of software test strategy.

What is Software Test Strategy?

Testing Strategies are the high level activities which define the approach for testing phase in the software testing life cycle. This approach is usually planned by project manager based on Business Requirements Specifications, design document and architectural design document which are prepared during requirement analysis phase. Test Strategy Documents states the objectives of the testing process, what all standards will be followed along with the timelines. Resource requirements, estimated costs and list of deliverables are also stated in this document.

This document is not changed often during the course of project and is used for guidelines by project members while creating test plans and cases. Big expensive projects should have a comprehensively defined software test strategy document.
Let us look at the various activities which are involved in the test strategy formation:
  • Preparation of test strategies document for various type of testing. The testing can be unit level, integration, system or user acceptance testing.
  • Testing tools are selected. Testing techniques are decided depending upon the functionality being tested. If repetitive testing is required in the module then automation testing is preferred while if usability of the software is being tested then manual testing is preferred.
  • Total test efforts are being estimated
  • Allocation of resources is done and their roles and respective responsibilities are decided.
  • If any training is required then training is imparted to the testers.
  • Environment requirements are being discussed in this phase which can be hardware, software, OS or network.
  • Capturing of all the approvers of the document, their titles and sign-off date.

What is Test Plan?

Unlike Test Strategy document, test plan is a low level document which is derived from SRS, UC documents and strategy document itself. Some small projects may not require project manager to prepare strategy documents but a test plan should be developed no matter what the scale of project be. It is prepared by test manager or lead.
Test Plan document is more granular and changes as the project moves forward depending on changes in approach or suggestions by team members. While test strategy document is client focused, test plan is project focused.

Read More:
Pros and Cons of Manual Testing
Benefits of Unit Testing
Difference in Test drivers and Test Stubs

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Social Effects of Global Warming

“I gave you life & now it’s your turn to reciprocate”

Global warming is not just a geophysical phenomenon, the effects of Global Warming are economic, social, and environmental and in coming years will change people's lives in a myriad of ways that we are just beginning to understand. Recognition of this complex interface is answer to enact effective policy on climate change. It continues to effect the whole world and not any particular country. (Read about the Global warming and causes of Global warming here)

The most unprotected continent from Global Warming is Africa. Also, there is a threat to developing nations of succumbing to the consequences of Global Warming, since developed nations have adequately prepared themselves for fighting off any disaster. Small islands and the Arctic area will be affected negatively if there is a rise in temperature of 4 degrees Celsius, whereas above 4 degree Celsius would probably affect the whole world in ways that might trigger mass scale disasters.

Global warming has negatively affected food production due to increased levels of carbon dioxide in the atmosphere. Elevated temperatures globally have resulted in extreme weather conditions like storms, drought, floods which in turn leads to other habitation issues and migration of humans and animals as well. With excessive emissions in developing countries the health of people is also affected as it gives rise to more environment issues. In such a condition where there are not enough resources for everyone, it leads to social conflicts for basic amenities like food and clean water.

Let us now discuss the effects of climate change on human lives and society as a whole and why climate change is a social issue, not just an environmental one.

Social Consequences of Global Warming

  • Migration
    Small islands, especially in developing states will be vulnerable since they are at the forefront of feeling the effects of Global warming. Many communities will be forced to migrate as they will be exposed to the rising sea levels. Also, due to severe drought which puts strain on resources, or even heavy downpour are consequences of global warming. The entire nation of Kiribati, a small island state in the Pacific, is expected to become uninhabitable due to sea level rise. In 2014, Fiji's village Vunidogoloa, became the first community to relocate and moved 1 km further inland as a part of the country's Global Warming program as the sea levels had already breached the coastal line. In small islands and mega deltas, inundation might take place as sea level rise is expected to threaten vital infrastructure & human settlements. This could lead to issues of homelessness in countries with low-lying areas such as Bangladesh.
  • Agriculture and Food Supply
    Global Warming will affect the food production capacities and capabilities as it will totally disrupt the proper functioning of the ecological system. As a result of elevated Carbon Dioxide in the air, elevated temperatures, altered rainfall and evapotranspiration regimes, increased occurrence of extreme events, modified weeds, pests, and pathogen pressure will be consequences faced by us. Low-latitude areas are at highest risk of having decreased crop yields. Even the areas above the sea levels will see drastic climate changes which will alter the crop production patterns.
  • Health
    Children and the elderly are also more susceptible to the health concerns associated with global warming. Heat-related ailments due to higher temperatures, undernourishment because of amplified strain on food supplies/increased costs, and diseases associated with increased flooding. Where farmers don’t have equal access to land, capital, and other resources, they have trouble to get climate resistant technology or plants. There are psychological and physical impacts that are visible. Various climate related diseases have started fostering and researchers around the world are wary of various new cases of deformities being reported whose causes are unexplained at this moment.
  • Infrastructure
    Developing nations struggle with absence of infrastructure, restricted technological and economic resources, which hinder their capacity to adapt. These nations depend upon scarce resources and deal with high rates of poverty and income inequality, which are exacerbated with global warming. Public funds to be used towards education will be spent on sea walls, increased irrigation, or storm water systems to adapt. This may lead to straining of existing infrastructure.
  • Water Resources
    Global warming is also affecting water bodies and resulting in changes in precipitation, the cryosphere and surface water. Due to changes in temperature resulting in changed sea level and precipitation variability there is an anticipated impact on the freshwater systems of the world. The rise in sea level is turning groundwater and estuaries saline thereby declining our freshwater resources and also their quality for humans and ecosystems.
The impacts of global warming are sensitive and vulnerable. "Sensitivity" is the extent a system or sector might be affected, positively or negatively, by Global Warming. "Vulnerability" is the extent a particular system or sector might be adversely affected by climate change.

Read More :
Pros and Cons of Tidal Energy
Benefits of Hydroelectric energy

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