With advanced technology emerging in an increasing number of vehicles, insurers have their work cut out for them to keep up. Is your insurance provider prepared?
Connected cars used to be an idea destined for a faraway future. Well, turns out that future came faster than we thought. Built-in navigation systems, lane correction, and parking assistance all already exist in many of today’s vehicles—and that’s small potatoes compared to connected cars to come. Tesla, Volvo, and Ford are just a few of the manufacturers with big plans for new connected vehicles scheduled to hit the market as early as 2018.
While exciting for consumers, high-tech automobiles have become a point of concern in the insurance industry. Current auto insurance plans lack coverage specifically related to these new features, and dealers need to be educated on the compliance measures required to obtain clearance to sell these vehicles. While it’s uncertain exactly what to expect from connected cars of the future, you should be seeking out an insurance provider that’s truly ready to handle these changes.
Here’s what to look for.
Updated coverage plans
While standard auto insurance plans include coverage for liability, collision, and bodily injury, current supplemental coverage for new, high-tech features is either insufficient or nonexistent. Why is this the case? It all has to do with risk assessment. Insurance underwriters are still in the process of measuring the risks associated with connected vehicles in order to produce appropriate coverage plans. To bridge this gap, be sure to partner with an insurance provider—like Fortegra—that understands the importance of having these conversations early and often to guide you toward solid solutions.
Compliance backing
Regulation in the automotive industry is plentiful. These laws are mainly in place to benefit the consumer and protect the environment, which ends up affecting a car’s appearance, safety features, and overall performance. Dealers that fail to comply risk expensive repercussions. To mitigate this risk, auto manufacturers and the dealers they work with should undergo a rigorous compliance assessment with every vehicle. Aligning with an industry expert that knows compliance laws inside and out can go a long way to ensure this process is done right.
Connected cars are the way of the future. Let Fortegra help make that future a little clearer for you. For other ways our Auto F&I programs can support your customers from behind the scenes, see our latest blog on why having a speedy underwriter is vital.
