Telematics App Glitches Causing Denied Insurance Claims: What You Should Know

Telematics insurance apps offer a great way for drivers to save on their policies, but you may not be aware that telematics app glitches causing denied insurance claims are a possibility. We’ll go over some common errors on insurance apps that become the reason for denied claims and give tips on how to handle them.

Whether you’re a first-time insurance app user or a seasoned pro, this information on errors with telematics insurance coverage will help you navigate the often-tricky world of auto insurance telematics with confidence.

Purpose of Telematics Insurance Apps

Have you ever wondered why your car insurance rates are what they are? Well, there’s a lot that goes into it. Insurers look at a wide variety of factors, including how you drive.

In the past, insurance companies had to rely on your driving record to get an idea of your habits behind the wheel. But now, with the invention of fancy car insurance tracking devices, insurers can really get a feel for how you drive. They call this line of technology telematics.

It’s usually a tiny device in your car or an app on your smartphone that tracks your driving habits. These devices allow insurers to keep tabs on your driving, which helps them determine rates that truly reflect your risk as a driver.  Basically, telematics is like a “report card” for your driving.

You’ll likely be rewarded with lower rates if you’re a safe and cautious driver, making it easier to get low-cost car insurance with driver discounts.

But if you’re a bit of a speed monster, your rates might see an increase as a result of those high-speed reports that come in. Telematics apps are an excellent way for insurers to track and monitor driving behavior and determine insurance rates based on individual driving habits.

Different insurers offer various options on the kind of telematics to use, so you can choose the one that best suits your needs. Some providers use plug-and-drive tools, while others just have you download an app on your phone, which will instantly start collecting and transferring data to the service provider via WiFi or GPS.

Common Telematics App Glitches That Can Cause Denied Insurance Claims

Like with any new technology, there are frustrating issues that come along with it. Common app glitches like inaccurate data or lost data can lead to denied claims.

Inaccurate Data Telematics App Glitch

One main issue is that smartphone apps can log inaccurate data. Think about how much you rely on your smartphone for everyday tasks. Now envision using it to track your vehicle and monitor your driving habits. You know you’re a safe driver, so you know this will help lower your rates. It sounds like a great idea, right?

But there’s a downside. One main issue is that smartphone apps sometimes save false data. This is upsetting for users and can even lead to denied claims.

Imagine being in an accident and your insurance company denying your claim because the data collected by the app on your phone was inaccurate.

Read more: What to Do When Your Car Insurance Claim Is Denied 

Such errors could be due to a number of reasons, such as if the app was not calibrated correctly, if there were issues with the phone’s GPS or WiFi connection, or if the phone was not securely mounted in the vehicle. You’re left having to fight for coverage for damages and injuries, even though you did everything right as an insured driver.

Additionally, given that most people carry their phones wherever they go, it’s crucial to turn off the tracking software once you’ve finished driving to prevent unintentionally logging more miles. When you are a passenger or riding in public transportation, this will throw off the mileage and driving reports.

So before you hit the road, check your telematics app and ensure that it’s logging accurate data. That way, you can drive confidently, knowing that you have the correct reports of your trip to back up your claim if anything unexpected happens.

Data Loss Telematics App Glitch

Another upsetting malfunction that can happen with telematics devices is data loss. Data loss is a serious issue when it comes to using telematics for vehicle monitoring. Policyholders rely on the data collected by the app to support their claims and prove their safe driving. If that data is lost, it can lead to denied claims or missing a safe driving discount.

Picture this scenario: you were in an accident, and your insurance company denied your claim because the data collected by the telematics app on your phone was lost due to a system error or other technical issues.

System errors can happen due to a variety of reasons, such as:

• App crashes. These crashes occur when the app stops working, and this can happen for various reasons, such as when the app is not properly updated or if the device no longer meets the app’s system requirements.
• Hardware malfunctions. If your phone or tracking device is out-of-date, a hardware malfunction could cause loss of data.
• Conflicts with other apps or system settings. If you don’t have the tracking settings set correctly, for example, the app may not be able to properly track your data.
• Cyber attacks. These attacks can happen through various means, such as phishing, malware, or exploiting vulnerabilities in the app or device.
• Software bugs. If you don’t keep your software updated, bugs could result in data loss.

All of these system errors would leave you feeling stranded. And worse, you could be left paying out of pocket for damages and injuries despite always paying for your insurance on time.

Failure to Track Location Telematics App Glitch

The last top-reporting issue with telematics apps is the failure to track your vehicle’s location. One of the main advantages of using a telematics device is its impressive ability to track your mileage and driving habits. So when the technology fails to track the vehicle’s location or movements, these gaps in tracking can lead to denied claims or lost discounts.

For example, you were in a car accident, and your insurance company denied your claim because the app could not track your vehicle’s location at the time of the accident. This would cause you major setbacks in filing your claim. You could be left without coverage for damages or injuries despite being a responsible policyholder.

There are several possible causes for the app to be unable to track the vehicle, such as GPS malfunction, lack of cellular or WiFi coverage, app settings misconfiguration, and device incompatibility.

To avoid this situation, it’s important to ensure that the app is properly configured and that the phone’s GPS and cellular or WiFi connection is working properly. If the app cannot track the vehicle, report this issue to the insurance company as soon as possible. Be proactive so you can avoid denied claims, know you have the coverage you need, and get the discounts your driving has earned.

The saving opportunities with telematics are endless. With most insurance providers today, it’s your best bet to lower your rates. In fact, many providers will give you a 15-20% discount just for signing up for their driver-monitoring program. So, even though there are sometimes tech issues, we still suggest you at least give telematics a try. It’s worth the money you will save.

How to Avoid Telematics App Glitches

Below is a list of our seven top tips you can follow to avoid these discouraging app issues and tech failures.

• Understand how the app works before installing it. Make sure to read the terms and conditions carefully and ask any questions you may have to ensure you are comfortable with the app’s functionality.
• Test the app’s accuracy by comparing the data it collects with your own records. Keep an eye out for any discrepancies and contact customer support right away if you notice any errors.
• Regularly check the app’s data to ensure it is accurate and up-to-date. This will help you identify any issues and ensure you get the most out of your telematics device.
• Don’t hesitate to contact customer support for assistance with any app issues. The app’s developers or tech team should be there to help you and answer any questions you may have.
• Keep your app updated. Make sure to update it when prompted to ensure it is running the latest version with the best performance and security available. When you run software updates on your smartphone, confirm the driving app is still working, as software updates cause delays or issues with connectivity.
• Use the app only while driving your designated vehicle. This will ensure that the app collects the correct data and provides the most accurate information.
• Shop around to find the provider that offers the best telematics app. Different providers offer various features, apps, programs, discounts, and pricing, so it’s essential you compare a few options to find one that best meets your needs and budget.

If you find that the provider’s customer service is lacking and you can’t get the help you need, it may be time to find a better provider. You are paying them for your coverage and using their telematics device, so they should be there to help you when things go wrong.

Learn more: Save Money by Comparing Online Car Insurance Quotes 

It is also a good idea to read customer reviews and look out for red flags, such as poor customer service or common occurrences of data errors and tech failures.

The Final Word on Telematics App Glitches Causing Denied Insurance Claims

While telematics app glitches can cause denied insurance claims, don’t let insurance app errors and delayed or potentially denied claims make you give up on telematics. Technology is improving every day, and usually, these programs offer you the most savings.

As long as you make sure you are comparing telematics app data and familiarizing yourself with how the app works, telematics apps can still be a great way to get affordable auto insurance.