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Insurance Article

The Future of Car Insurance: Tracking Devices and Telematics

November 29 2016
Future of Car Insurance

A list of technological advancements that will transform the future of car insurance

Unprecedented technological advancements have placed automotive industry at the forefront of a massive transition. As the cars are becoming autonomous, the insurance industry is also transforming itself to cope up with the transition with the successful introduction of technology in insurance industry. Here are a few technical advancements that will revolutionise the future of car insurance.

  • Telematics

From simple devices to tracking driver's speed and mileage to advanced data recording tools, telematics has evolved a lot in the past few years. Insurance companies are employing it to monitor driver's behaviour while driving to assess risks and charge insurance premiums accordingly.

According to ABI Research’s report, global insurance telematics subscriptions will be more than 107 million in 2018, almost 20 times of the 5.5 million in 2013. Insurers are coming with promises of cheaper premiums as rewards for safe driving and as per experts, real-time tracking will be compulsory by the next decade.

  • Smartphones

Almost every insurer offers a smartphone application these days. Apart from these, there is a multitude of applications that can be synced with your car's dash cam, record videos of an accident, record conversations with witnesses and capture any other document on the scene.

Apps offered by insurers also provide facilities like online chats, video chats, etc. to streamline and accelerate the process of claim settlement. Also, reporting an accident scene in such detail will reduce your chances of claim rejection. Thus, you won't need to justify yourself against the other driver at the time of assessment.

  • Emergency alerts

Modern cars are incorporated with software that automatically alerts emergency contacts and services in case of a serious accident. Insurers and emergency contacts are notified about the details of location, number of passengers and are asked for an appropriate response.

Several cab providers also provide emergency alerts services where a rider can share estimated time of arrival and the location with emergency contacts. There are also apps that allow the rider to reach the 24 X 7 helpline directly during an emergency. Soon, this emergency call technology would be a mandatory feature in all cars.

  • Dashboard cameras

Dashboard cameras are amazing devices that can record forward, sideward and even rearward videos. These recordings are extremely helpful and can be used as an evidence if you get involved in an accident. It gives the insurer an insight into the accident and the causes that led to it.

A high-quality evidence allows insurers to fasten the claim settlement process. It also reduces the risk of fraudulent and excessive claims. Not only four wheelers but also several manufacturers are providing helmet cameras for two wheelers to record an accident scene.

  • Driverless cars

Autonomous cars with features like self-driving and self-parking are no longer fiction and are likely to hit the roads by next decade. Google has already been driving driverless cars since 2009 and other manufacturers like Tesla Motors, BMW, Mercedes and Infiniti are also working on fully autonomous cars.

The modern hi-tech software takes control of the vehicle and reduces the chances of human error. Information obtained from radar, auto steering, lane assist, speed limit controls, etc. can be used to address the cause of an accident. However, who will hold the liability of the accident is still unanswered.

Considering the pace of transition of the automotive sector, it is best to opt for a comprehensive car insurance that adapts future technological advancements along with providing basic coverage.

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