When it comes to car insurance and claims, the industry has come a long way from manual assessments and handwritten reports. Due to technological advancements in this field, it is possible to waive off the chances of human errors resulting in quick as well as fair decisions.
Let’s take a look at how these advancements will technology change the Future of Car Insurance
Telematic Systems
A telematics system comprises of a set of devices that can communicate with each other. They work in real-time. These devices can also send reports to the insurer. The driving patterns can reveal the risk profile of a driver. Through this, the insurer can decide the cost of the car insurance policy. In turn, this could help an insured pay the fair price of a policy and not wait for years to provide a proof of being a safe driver through No Claim Bonus. Telematic devices are also helpful in situations like calling emergency services, availing roadside assistance or for the purpose of navigation.
Artificial Intelligence
The applications of Artificial Intelligence or AI are not limited to robots that can interact with human beings. AI holds a prominent place in the future of car insurance as well. The applications of AI are already taking roots in car insurance. Here are the various things powered by AI, which are and will be useful for car insurance:
Chatbots
A simple software to answer user queries can only be helpful to a limited extent. Feed a set of answers into this software and it will be of use only if a user types a corresponding question. However, if this software is powered with Artificial Intelligence, it will not only answer those few limited questions but evolve to display a better answer each time by saving as much data as possible from its previous interactions and new information. With AI, a simple question and answer software turned into a personalized chatbot, efficient enough to solve use queries based on their details. It can answer a range of questions that can be as difficult as solving queries related to renewal of car insurance or something as simple as how to buy online car insurance.
Internet of Things [IoT]
The Internet of Things came into existence with the creation of Internet Protocol version, 6 (IPv6). It became possible to allocate an IP address to every physical thing on the planet.
Detecting Fraud
Internet of Things can be used to detect fraud at the time of car insurance claims. For example, when a car is assessed for damages, a report can be created to differentiate between current and old damage. An insurer will then settle a claim for current payable damages with the help of the report generated by the Internet of Things, thus preventing a possible fraud.
Apart from claims, this technology can be used after buying a car insurance policy to alert emergency services and insurance company in an unfortunate event. If the car meets with an accident, a report can be sent immediately to the insurer about the impact of an accident and consequently the extent of the damage. Meanwhile, emergency services can be notified with the accurate geographical locations. Also, drivers of other vehicles will also be notified about an emergency.
How to buy car insurance?
It is possible to buy car insurance online in a very convenient manner. All you have to do is visit the online website of a car insurance company, submit your details and buy the policy after reading the terms and conditions carefully. This method can also be used at the time of renewal of car insurance policy.