The impact of tech on the car insurance business
A Teenage boy and new driver behind wheel of his car
If you are a UK driver you have to have car insurance according to the law. Whether it is temporary car insurance for a quick trip or a longer policy to cover everyday needs, you will need to have insurance to remain compliant.
Many different factors go into regulating and controlling the car insurance business. Technology has been making its mark on this industry. Here are some of the ways that technology is influencing and changing the car insurance industry.
Driving behaviour
One of the newer ways that technology can influence car insurance is the use of telematics. Telematics are commonly known as black boxes. These can either be physically attached to your car or utilise a mobile phone app. Using GPS to monitor how you drive by monitoring behaviours such as speed, braking, the types of roads used as well as the miles you drive.
The benefit of a black box is that safer drives will be rewarded with lower premiums, meaning they will end up paying less than drivers who break the speed limit or drive more miles. You may be offered non-monetary rewards for being a safer driver, such as free policy upgrades which still results in you paying less for better coverage.
Safety
Whenever you see a glimpse into the imagined future in films or books, chances are flying, autonomous cars make an appearance. Whilst there is currently no such thing on UK roads, there are some systems that are headed into the technological future.
Advanced Driver Assistance Systems, or ADAS, encompass a wide range of features that are becoming more and more common in UK cars. Cruise control is one example of convenience automation.
As all the ADAS systems are designed to be as safe as possible, some insurers have started offering discounts on policies for cars that have certain features. This is because automation can help to reduce accidents, making your policy less of a liability for the company.
Customer experience
Sitting on hold to speak to your insurance company can be a headache but technology is aiming to make the experience easier and quicker.
The introduction of chatbots and text messaging systems aims to help customers with simple queries. This takes away the need to wait for an advisor and keeps customers happy and with accurate information. Relying on digital methods frees up human advisors for the more complex calls, allowing companies to utilise their talent most effectively.
Some insurers allow you to submit photos through online portals when you are submitting a claim. AI algorithms are then used to estimate claim costs and coverage. This method is far quicker than postal submissions or having an adjuster come out in person, making the overall process of a claim much quicker.
