Technology has made its presence felt in just about any industry. In the corporate world, computers are slowly taking the place of humans. One other industry is starting to embrace technology is car insurance. A car insurance provider that utilizes up-to-date technology has a competitive advantage over other companies. Not every company will offer technological innovation.
The last decade saw an increase in more complex automotive technologies that has made driving safe impacting car insurance premiums. Big data has improved a company’s ability to forecast risk trends. In the coming years, the insurance industry will be feeling the impact of these innovations.
One of the biggest changes that will impact the car insurance industry is driverless vehicles. According to the ENO Center for Transportation, if 9 out of 10 vehicles on the road were driverless, the result would be 4.2 million accidents less and 21,700 lives saved a year. A study by the Transportation Research Institute of the University of Michigan revealed that driverless cars with unoccupied “return home” could decrease vehicle ownership by 43%. Google estimates a 90% drop in vehicle ownership with this technology.
Another technology that will find its way in the market is telematics. It combines computers and wireless technology in order to stream information across several platforms. Telematics helps provide car insurance companies with information such as the length of time a car went over a certain limit or how quickly a driver hit the brakes. The technology was used in 2012 when State Farm partnered with Ford in order to create a pay as you go policy.
User-Based Mobile Applications
Insurance companies are starting to offer mobile applications in creating quotes, reporting claims, getting information, and allowing customers to summon agents to their home. Likewise, it has allowed drivers to transmit live vehicle data and capture images and loss investigation information.
As technology slowly finds its way to the industry, the need for car insurance will feel its impact until such a time that there would be no need for it.