How Tech Changes Car Insurance Policies

Technology is a dynamic driver of invention, and we have seen how it transformed the commerce and industries around the globe. As we all know, the car industry has been greatly changed by the technological advancement shared by manufacturers from different countries.

Technology is a dynamic driver of invention, and we have seen how it transformed the commerce and industries around the globe. As we all know, the car industry has been greatly changed by the technological advancement shared by manufacturers from different countries.

A need to manufacture small but fuel-efficient cars has risen, and upgrades appear every now and then that revolutionized the cars and driving. Now, this shift brought by technology to the auto industry has extended to policies.

Let’s take a look at how tech changes the car insurance:

Cars go for more compact build and designs.

Since 2015, cars are heading to a more compact design and lighter build. The redesign of Ford F-150 pickup is an epitome of this trend as it is going to be constructed with aluminum cabins and bodies.

In line with this, Sports Utility Vehicles have followed suit by incorporating more compact with its designs, and this has brought out the creation of the “subcompact” category for SUVs, which have a lower price and more fuel-saving than its larger family. Two examples under this category are Chevrolet Trax and Jeep Renegade (2015).

Cars are used for shared mobility.

As of the moment, Grab is the only platform allowed in the country but ride-hailing apps may rise higher in the future, especially that it’s an effective concept in the congested roads of Metro Manila. Shared mobility does not only help drivers to save money, but it also changes the car ownership and the purpose of automobiles.

Cars are installed with better connectivity.

Cars have gone a long way when it comes to connectivity. Having a mere radio is a thing of the past because various standard GPS systems are installed to enhance the driving experience. This will make immediate fixes to auto software and real-time traffic updates.

Incorporating 4G LTE is planned by Audi and General Motors. On the other hand, models of Mercedes and Lexus plan to transform hybrid cars or those automobiles that utilize fuel and electric systems at the same time – into high-performing luxury lines.

Cars will have data tracking technology.

In the United States in 2010, a data tracking technology called Snapshot is developed. The drive is as tiny as a thumb that fits in the diagnostic port of the car. It will transmit data to the company through a cellular network, which is then used by the insurance provider to find out the add-ons or discounts to your premiums.

In the Philippines, this dongle can be purchased through Remora, but it is only a tracking system that utilizes satellite technology in observing the location of a vehicle.

Cars are built with high-tech safety features.

Due to the number of vehicular accidents, more safety features are being pushed for cars. Mid-range and high-range cars are installed with radar sensors and video cameras that send signal warnings to avoid lane departure and course collision. As examples, Honda CR-V (2015) and Ford F-150 (2015) have radar cruise control and lane-keeping assist.

These features will eventually lead to autonomous cars or driverless cars in the next decades. Google advocates for the research and development of these revolutionary features.

Effects of technology to Car Insurance

These are the effects of tech on a car insurance policy:

  1. Data tracking technology helps policyholders to lessen their premium rates by tracking vehicle performance.
  2. Streamlined cars are safer, more comfortable, and higher mobility – these can also lower car insurance rates.
  3. Various safety techs such as vehicle-to-vehicle communications, telemetrics, automatic braking, and autonomy revolutionize the automobile industry which can have a reducing effect on premiums.
  4. Because of this technological advancement, the risk factor may be shifted to vehicles instead of the drivers, and by this concept insurance providers will apply these shifting of liabilities to the manufacturer from the car owners.
  5. Driverless cars may revamp the risk assessment processes of insurance providers.

The bottom line is that technology has now a factor that reshapes with how we use our automobiles and car insurance policies. This will also make changes to quicker processing of claims and customization of services fit for Filipino car/motor drivers.

 

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