As new technology infiltrates automotive, protection providers will see drastic changes in the way they do business. Here are a few places this insurance transformation will begin.
When you think of cars of the future, a flying DeLorean might come to mind first. In reality, the tech advances the auto industry has in store won’t take you to the future, but they will include some seriously innovative updates that will change the vehicle experience. Invariably, these upgrades will also influence the solutions auto protection providers offer.
How? Here are a few auto tech advances and what they mean for providers.
As futuristic as it sounds, self-driving cars are here. Just look at Tesla’s new S and X models with the autopilot feature. Yes, autopilot. And that lack of driver control means a lack of driver-caused accidents—a concept totally foreign to protection providers. They’ll now have to take into account the chances of a hack versus a driver-caused accident based on past driver history, age, gender, type of car and other factors. Time to start crunching those numbers!
While GPS tracking already exists, tech advances will push vehicle tracking even further, allowing insurers to monitor both driver and vehicle tendencies to an even greater degree. Some of these monitoring devices observe speed and use of breaks, which can indicate how carefully drivers are maneuvering their cars. And this kind of monitoring will benefit some consumers, as they’ll receive discounts and premiums for driving safely.
The use of biometrics—personalized identification technology like fingerprint scanners—to enter or start a vehicle means that break-ins from compromised keyless entry systems could be largely diminished, minimizing the need for certain types of coverage. But there are other bells and whistles to enjoy, too. This technology could also let drivers pre-set their preferences to accommodate different operators. The radio might be cranked to 11 while Jack is in the car, while the driver seat automatically moves forward when Jill takes the wheel. Pretty cool stuff.
Yep. Big advances for the future of the auto industry are on the way. Want to know more about the impact? Check out our piece on autonomous cars!