The Future of Car Insurance: How Technology Is Changing the Industry 

What if you could give one of your most important investments even better protection? 

For many, an automobile is one of their most important investments because it helps them work, play, and everything in between. Accordingly, they purchase car insurance as a way of protecting their automobile from an unknown future. 

However, the future of the auto insurance industry is unknown to most drivers, and they are likely to be taken by surprise as their policies change over time. Do you want to know what today’s trends in auto insurance are telling us about the future of automobile coverage? Keep reading to discover all the answers. 

A Glimpse into Auto Insurance’s Tech-Driven Transformation 

At first, you might think the future of car insurance cannot be all that different. After all, while there are more options (including electric and hybrid), the fundamentals of driving remain the same. Furthermore, the dangers on the road remain rather consistent, so what exactly is changing? Technology.  

The intersection of technology and car insurance has created a world where things like applying for policies and managing claims have been completely overhauled. Modern tech, such as artificial intelligence, big data, and blockchain, means that the carriers of today can offer more personalized solutions for drivers. By better understanding these emerging trends, it is possible to better chart the future of the auto insurance industry. 

Turbocharging Claims Management with Technology 

Have you had to file an insurance claim in recent years? If so, you may already know technology has been used to almost completely overhaul that process. Once upon a time, filing a claim was long and laborious because policyholders had to complete a lot of physical paperwork, mail it in, and then wait a long time for it to be processed. This often added insult to injury for those who had narrowly survived an accident and were still dealing with the trauma. 

The claims process today is almost entirely online. After an accident, you simply file digital paperwork, upload any images, and instantly submit everything your carrier needs. This has greatly streamlined the claims process, and new advances in blockchain technology may make this process even smoother and more secure. That is because the blockchain can protect information while also creating data transparency, making claims processing quicker even as it reduces the chances of fraud. 

Navigating New Policies in the Age of Automation 

When it comes to technology and car insurance, claims are not the only area that has been seriously improved. In fact, most of that technology is already under your hood. Improvements in automobile tech have led to transformations in the insurance industry that should improve the lives of drivers everywhere. 

This includes driver assistance technology, self-driving cars, and even special telematics data that can be instantly transmitted from the vehicle to your carrier. Each of these technological developments affects how your car is insured, and knowing how can help you maximize your own automobile protection. 

Driver-Assist Technologies and Insurance Premium Considerations 

Many new vehicles come with special driver-assistant technology, including lane departure warnings, blind spot detection, automatic braking for accidents, and so much more. These features enhance the cost of your vehicle in the short term but may pay for themselves in the long run by helping you achieve a cheaper premium. After all, carriers typically offer discounts to drivers who have special safety features (including anti-theft devices) installed in the vehicle. 

The Fine Print of Insuring Autonomous Vehicles 

Despite years of hype, we still seem a long way off from having fully autonomous, self-driving vehicles. But self-driving does exist as a limited feature, and the fact that even self-driving cars cannot drive without insurance has created an ongoing debate over whether the driver or the manufacturer should be liable for any accidents. Should liability shift entirely to the manufacturer, this might actually cause owners of self-driving vehicles to pay less for coverage over time. 

Development of Usage-Based Insurance Policies with Telematics Data 

Drivers who feel comfortable doing so can install devices in their cars that report back to the insurance company. The data reported back can help drivers qualify for things like safe driving discounts and even low-mileage discounts (great for those who work from home). Keep in mind that it also reports things like speeding and running red lights, so reckless driving can result in your rate actually going up instead of down. 

Powering Through with Performance Data 

Obviously, insurance carriers receiving that telematics data are mostly interested in how someone is driving because this affects the cost of their premium. However, most drivers do not realize how thorough the data collection is and how this can further affect their policy. 

Reliance on this tech has become one of the biggest trends in auto insurance. Knowing more about how this data collection affects your bottom line will help you know what to expect from the future of the auto insurance industry. 

Harnessing Real-Time Data for Customized Coverage 

Traditionally, automobile premiums have been set reactively. That is, it is not until you get tickets or file claims that the carrier decides to increase your rate. Now, real-time data can help a carrier customize your premium and even offer more customized coverage based on where and how you drive. 

The Role of Big Data in Predictive Risk Assessment 

The future of car insurance involves big data, a term that refers to the totality of information your carrier collects about your driving. Big data can help the carrier respond to accidents in real time, but it can also provide the carrier with plenty of detail about the risks you face on the road. In turn, their enhanced risk assessment can help you prevent future accidents and, worst case, have the coverage you need before filing a claim. 

Accelerating Toward Personalization and Convenience 

If you are not a very technologically sophisticated person, then all this talk about big data may make your eyes glaze over. And it does not help that much of how this technology is used occurs behind the scenes, where you cannot appreciate how it is revolutionizing the industry. 

However, one thing you are guaranteed to notice is car insurance will only get easier over time. That is because all of this data carriers collect can help them offer a more personalized experience to everyone and even recommend important protections like LED headlights for nighttime driving. Such personalization is just one way that tech has made car insurance more convenient. 

Revamping Customer Experience with Digital Engagement 

Technology has allowed carriers to digitally engage consumers by offering targeted discounts, customized coverage options, and personalized risk mitigation plans. All of this adds up to safer driving and better savings over time. 

Get Insured and Adapt with the Times 

Now you know more about the future of car insurance. That includes knowing about the technology innovating this field and how the innovations of today predict the conveniences of tomorrow. But do you know where to find the best automobile coverage for your needs in the here and now? 

Here at InsureOne, we always have our fingers on the pulse because we want to give you better coverage than you ever thought possible. Ready to see how a combination of futuristic technology and great customer service leads to better and more affordable car insurance? In that case, it is time to get a quote online. Alternatively, you can also pick up the phone and give us a quick call at 800-836-2240. Finally, never hesitate to visit us by finding an InsureOne office near you.