How technology will influence your car insurance

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Technology is changing the world of motoring, although we probably don’t need to tell you that. The cars of the future are a dramatic step away from what we currently know and trust. They will be driverless, connected, and fitted with ‘black boxes’.

However, in the world of technology, the latest technological advancement is only as good as the one waiting in the wings. With the motor industry constantly announcing the launch of the next big thing in terms of road safety, in-car entertainment, and convenience, what does this onslaught mean for the humble motorist? 

These revolutionary ideas are already changing the way motorists think about (and drive) their vehicles. But more than that, this new technology is shaking up the motor insurance industry, too. 

For anyone who thinks the motor insurance industry doesn’t move with the times, 2015 might just be the year you change your opinion. In fact, with so much new motoring technology emerging, the motor insurance industry is undergoing something of a revolution.

Here are some of the latest advances in motoring technology and the effect they will have on your motor insurance.

Telematics systems

Telematics works on the basis that the safer you drive, the lower your premium will be. It works using a ‘black box’ which is installed into the car and records data on how you drive in terms of speed, mileage, and braking patterns. 

The benefits for drivers taking out telematics insurance is that premiums could be reduced based on your actual driving ability rather than risk factors such as age, postcode, and make of car. It offers a type of pay-as-you-go insurance that is perfect for young drivers or those who only use their car occasionally. As great as this technology is, however, it can’t differentiate between different drivers, so if multiple people use one car, they could all be charged at the same rate as the most expensive driver.

Wearable technology

The popularity of wearable technology is increasing all the time, with its promise to enhance our lives for the better. Carmakers including Nissan, Mercedes and Ford have been working on projects developing wearable technology to heighten the driving experience. By monitoring the driver’s health (such as heart rate) alongside driving performance and fuel consumption, this technology has been welcomed as a step forwards in making our roads safer. 

However, it is hard to predict how wearable technology will affect insurance premiums. Telematics systems may be helping insurance providers better calculate premiums, but could wearable tech actually be more of a distraction than a driving aid – especially when connected to social media feeds? #eyesontheroad

Apps

There are various mobile phone apps that can serve as our eyes and ears in the event of an accident. A number of insurance providers have produced these apps as part of their customer service efforts, recording any relevant information such as number plates and witness details. 

These apps make the process of reporting an incident really simple, and can reduce the time it takes to settle a case. 
And it is this commitment to customer service that the motor insurance industry is looking to emulate. Because, as motor technology continues to break boundaries and becomes even more innovative and intuitive, it will be the insurance providers offering an enriched experience to their customers that will be on the road to success.

Big data

In today’s digital age there is an awful amount of data available concerning policy holders. Social media forms much of the visible portion of this data, but there is plenty more lurking behind the scenes, too. 
It is in the interests of insurers to have as much data as possible on their customers, and this focus on big data alongside telematics and mobile technology could help the motor insurance industry sharpen actuarial models.

Mobile devices

More motor insurance companies are supplying their agents with mobile devices. This ‘always connected’ ethos allows them to offer a more personalized service, increase collaboration across the industry, and reduce delays. 

Claims can be evaluated away from the office, and smartphones, tablets and laptops can be brought to an accident scene or into the customer’s home with relative ease. In short, increased mobility equates to increased efficiency in the field.

Computerquote Insurance searches for premiums from a wide range of insurers to get you the best deal, and can save you up to 20% using our quick and simple online motor quote.

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