The Role Of Insurance Companies In The Connected Car Ecosystem

Things You Need to Know Before Buying Car,House, Health & Life Insurance online.

Insurance Buying Tips #1: Shop smart
When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.
Insurance Buying Tips #2: Look for discounts
Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.
Insurance Buying Tips #3: Fill in the gaps
An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.

Your car insurance premium is determined by the make and model of your vehicle and the claim statistics for that particular model. It may appear to be a discrimination, but most of the times, people are unaware of the procedures involved with the purchase of an auto insurance policy. With IOT spreading its wings to engulf every area of productivity, the same can be coupled with insurance to widen their portfolio of financial services and revamp their insurance value chain.

Connected car technology

Even though modern cars use advanced electronic systems that control a wide range of functions, they still remain unconnected from each other while on road. However, in an attempt to draw parallels with the connectivity systems employed by airplanes, some manufacturers have begun the research of advanced connectivity options in cars as well. If implemented, it can have positive implications on the insurance industry as whole. At present the car connectivity is limited to basic functionalities such as real time navigation and the like. But with embedded connectivity in cars, the quantum of data generated will be so high that it can be collated, processed, and harnessed for a wide range of purposes including auto insurance. Such connected systems can give deeper insights about the driving patterns of the car owner, which can be used for risk-based pricing and preventing fraudulent claims. The Indian automobile market expects the launch of these advanced cars by the year 2020.

Passenger safety

When vehicles are fitted with latest technology units, the area of dynamics, navigation, and other value-added services get a giant push. Connected cars will not only set up new business models but will simultaneously enhance passenger safety and develop effective pricing methods. For example, during high speeds, the system will alert the driver about the same and give relevant safety instructions. Let's take a second instance where the driver and passengers require roadside assistance. In this case, they can engage the IoT system to send signals to the insurer for emergency services. Also, enhancing the transport domain with IoT will trigger fuel savings through advice based services. You can also avoid unplanned servicing and repairs with the performance tracking system fitted in your vehicle. Additionally, you will have access to information such as weather conditions, fuel stations, restaurants, danger zones, etc.

Insurance Buying Tips #4: Purchase life insurance—you aren’t too young
Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.
Insurance Buying Tips #5: Talk to an independent agent
An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.
Insurance Buying Tips #6: Only buy insurance to maintain your existing standard of living
You don’t need insurance for events that won’t severely strain your finances. Start with your basic needs (home, auto, business), then work your way to include other needs (cyber, liability). You can always obtain coverage later for something if you change your mind. You can minimize your risk and maximize your savings by buying insurance that won’t cause you to break the bank.

Enhanced data sharing

The chief advantage of connected car technology is the data sharing process. This connected car technology will form an ecosystem involving regulatory authorities, automakers, insurance companies, etc. Reports from around the world suggest that customers are willing to share driving patterns and their vehicle's performance data to avail greater benefits and lower premiums. The sophisticated sensors fitted in connected cars can monitor not just the distance but can also collect data from engine systems and mechanical components. The data so collected will help insurers provide customized services to customers.

Building customer base

With an engaging participation in the development of connected car ecosystem, insurance companies can build a strong customer portfolio based on real time driving metrics. Most insurers would have data related to claim history, but it may not be readily available for immediate use in connected car services. Therefore, in order to build up databases for connected cars, insurers will have to partner with automakers and other key players in the IoT ecosystem. This will change the entire model of operations, where insurers will play the role of reliable data owners who can provide useful value-added services. For example they can be contacted for information on risky locations, driving patterns, frequency of accidents, etc. The participation of insurers in connected car ecosystem will also have an effect on customer interactions. Generally, customers and insurers interact only for negotiations or during claim settlement. But with the connected car systems in place, insurers will become the trusted partners for customers by providing a wide range of physical services. To further enhance the level of interactions, they should also consider providing towing and remote maintenance assistance to customers.

Insurance Buying Tips #7: Ask your insurance provider what the policy doesn’t cover
Every insurance policy has perils that are not covered by your policy. These perils are referred to as “exclusions”, and every policy has them. Ask your insurance provider to explain the exclusions in your policy to avoid discovering what they are once you incur damages or a loss.
Insurance Buying Tips #8: Consider bundling several policies with one insurance carrier
here may be value in bundling several policies with one insurance carrier. If you’re looking to insure multiple vehicles or obtain multiple types of business coverage (e.g., liability, property, cyber), then you may want to consider obtaining coverages under one insurance provider who carries multiple products, and who may be able to offer you multi-policy discounts or loyalty programs.
Insurance Buying Tips #9: Review your insurance needs on a yearly basis
As your needs evolve, so will your insurance policy. Maybe you’ve acquired a new vehicle since obtaining auto insurance for your primary vehicle, or started operating your business out of your home, or experienced a cyber-attack during the year… Whatever the change(s), you’ll want to make sure you’re covered for any new risk exposures. Talk to your insurance provider to stay on top of your insurance needs.
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