Technology and its inevitable impact on the car insurance industry – A Double-Edged Sword

The auto insurance industry is going through revolutionary changes that are primarily driven by technological advancements.

It goes without saying that technology is not just a supporting layer in the motor insurance sector, it is now the centrifugal force. From the artificial intelligence helping you with your claims to the data generated by your car, digital interference is making car insurance more dynamic and efficient. From the perspective of drivers, this means manoeuvring a marketplace where your car features, driving habits, and even your data security awareness can have an impact on your car insurance plus policy premiums. 

Handling claims management process with technology

Did you recently file a claim? If answered yes, you might already be familiar with the technology that is now being used to navigate through the process. Gone are those days of laborious paperwork, multiple emails, and long waiting period. The present claims process of mostly online. After you meet with an accident, you upload the images and immediately submit all details needed by the carrier. This has not only streamlined the claims process but also made it secure and smoother. Blockchain can promote data transparency and also protect information making the claim procedure quicker. 

The age of automation and navigating through new policies

There have been numerous improvements in the car insurance industry that have improved the lives of drivers. This includes self-driving cars, driver assistance technology, and special telematics data that can be immediately transferred from your car to the carrier. All such developments have an impact on how your car is going to be insured. Being aware of this will help you maximise car protection.

The other side of the coin – The price of technological progress

These days, cars are packed with high-tech features like automatic emergency braking, adaptive cruise control and lane departure warnings. Although it is true that such technological advancements heighten the safety of your car, yet the intricate components can be immensely high-priced when it comes to repair. If there is a damaged radar sensor for your adaptive cruise control system, it will cost you considerably higher than a conventional brake system. 

Insurance companies will take into consideration these repair costs while settling your premium rates. Hence, the safety advantages may be non-negotiable, but the cost attached to fixing the technology can inflate your premiums unnecessarily. 

Insurance discounts and car safety additions

Thankfully, not everything is bad news. There are numerous insurance companies that provide discounts for cars that have safety features. Airbags, anti-lock braking system, and daytime running lights can qualify for a decrease in premiums. Work out a plan with your car insurance agent to understand these discounts and ensure getting the best rate for your insurance premiums. 

While you shop around for a new car, it is wise enough to keep in mind the potential impact on your insurance premiums. Do a comparison shopping for the insurance rates for different vehicle models before finalizing the deal with your car dealer. Take an informed decision to save money.