Whether you are a good driver or a careless one, there are insurance companies who will be happy to reward you for your skill (or lack thereof). When it comes to using big data collected from cars to benefit our lives, automobile insurance is one clear industry that could see big changes in the next fifteen years. For instance, based on the information that your vehicle shares, your insurance company can learn a whole lot about your driving style, habits, and most importantly what risks you should be rated for. Beyond the obvious data your car can share, there are more personal items which also may impact your future insurance premiums.
One study correlated a direct relationship between positive Twitter posts and a healthier heart. So while you are letting your autonomous car drive you to work, and updating your Twitter feed, you may one day be telling your insurance company how to treat your policy. It is a science known as “sentiment analysis” and while it is relatively new, it has been said to be quite accurate. Combine posts with artificial intelligence analysis, and you may be sharing more with your insurance company than you realized or wanted to.
As you know, your insurance premiums can go up and down depending on your driving history. In the future of big data in the automotive industry, more information will be available to companies that can assess your personal habits, as well as driving habits. From positive Twitter posts to monitoring your usual driving speed compared with the speed limit, your car will be able to tell many tales about you to its maker and your insurer. This could translate into better discounts on your insurance, particularly if it shows you to be a healthy and responsible driver.
Some insurance companies already have incentives for drivers to stay healthy, offering discounted rates based on years that you don’t have any accidents and or driving infractions. Two examples of companies are Discovery’s Vitality program and Allstate’s Drivewise. Allstate will install a telematics tracking device in your vehicle that can gather data about your speed, how fast you brake, as well as the timing for braking and frequency of use. For this program, rates are not raised, just reduced if you show better driving skills after being informed of the data and where you may need improvement.
Just as cars with more safety features are given a better score when it comes time to calculate what you will pay to insure, people who show greater responsibility may be given a lesser premium. Other ways that your information could be collected include call center recordings for roadside assistance and the onboard roadside assistance that sometimes comes with new vehicles. There are concerns that insurers could reject or accept applicants based on their information, leaving some without the insurance they need or paying huge amounts more than their friend or neighbor for the same services. Your Toyota Tacoma might be glad to give away your secrets and you just might be happy to allow the sharing of data if it means better service and better rates.
Insurance has generally been a collective experience of spreading risk between all insured parties. Customers will get a policy based on informed guesswork of what might happen, for instance, vandalism or glass break coverage versus comprehensive collision. Insurers provide the insurance plans based on the adjuster’s assessments of what the cost to cover any or all of the claims insured for will cost. There is stiff competition when it comes to automobile insurance. While drivers usually complain about the high prices, every company must work hard to secure your business while competing with other companies and industry changes. This is why auto insurance comparison sites exist as the need for transparency in how insurance rates are calculated and impacted is growing more important every day.
Telemetry packages added to a vehicle can currently tell a lot about what the driver is doing in regular driving, at traffic lights, and during accidents. In the future, it could become so personalized as to be penalizing for the insured, in spite of their circumstances. On the positive side, with all of the big data available, you may just find yourself a new friend to your insurance agency if your driving skills are good.
