Finance

Future of Car Insurance: Influence of Technology

Technology has made our lives a lot easier and convenient. With new inventions and improvements in current technologies, we are swiftly moving towards a digital age. The recent demonetization drive initiated by the Indian government that has fundamentally changed the way we transact is a testament to this.

The car industry is on the brink of a paradigm shift owing to this advent of new technological advancements. To name a few, Google’s self-driving car that essentially works as an auto-pilot vehicle, cars running on eco-friendly alternative fuels, electric cars from Tesla Motors, improved safety mechanisms all seem very promising. Since car insurance is mandatory by law, the automobile and car insurance industry go hand in hand. Thus it is imminent for the technological developments to trickle down to the insurance domain.

While we are already enjoying several benefits of the digital revolution in instant policy generation, cashless payments, zero paperwork, self-survey of vehicles for lapse policies, there are some more developments in the offing. Let’s take a look at some of them.

  • Dashboard Cameras ( AKA dashcams )

It is basically a camera attached to the interior windshield or the dashboard of a car. The dashcam continuously records a video, essentially offering the driver’s view while inside the car. While they are relatively common in western countries, they are yet to take off in India. When it comes to insurance, the dashcam provides concrete evidence in the event of a car accident. Such evidence helps insurance companies to process claims faster and smoothly. With this, the menace of excessive and fraudulent claims is also kept in check.

  • Telematics

Simply put, telematics means the transmission of data over long distances. With telematics’ help, data such as driving speed and mileage can be captured to gauge the driver’s behavior and overall driving ethics. Since the car insurance premium is based on the perceived ‘risk,’ this data can determine the premium. The driver can be rewarded with discounted premiums for safe driving.

  • Emergency Contact

Today, we have started to see cars with devices that can store emergency contacts that include car insurance company numbers. Whenever there is an accident, these emergency contacts are dialed automatically, alerting them instantly. Information such as the location, time, number of passengers, etc., is relayed accordingly. This is very useful from the safety as well as the claims perspective. This technology is also used in cabs for sending details such as estimated time of arrival and dynamic location information to the emergency contacts.

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  • Smartphones

It is an understatement to say that smartphones are at the heart of the digital revolution. With smartphones, technology has managed to penetrate greatly into all segments of the market. Almost all car insurance companies have their dedicated apps. With these apps, you can easily buy as well as renew car insurance online. You can compare online vehicle insurance with a third-party aggregator too. In addition to this, with a smartphone, you can easily sync your dashcam to store and send the video to the insurance company. This will greatly help in the claim settlement process.

About author

I work for WideInfo and I love writing on my blog every day with huge new information to help my readers. Fashion is my hobby and eating food is my life. Social Media is my blood to connect my family and friends.
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