How innovations in your car impact your insurance
As the motor sector continues to rapidly advance, the car insurance industry is said to be evolving to keep up with these changes.
Picture: © seanlockephotography/123rf.com
Gugs Mhlungu spoke to Motoring Enthusiast, Warren Tucker.
Listen to their conversation in the audio clip below.
"There are quite a few people who don't want these systems in their vehicle, they just want straightforward insurance. I pay you every month so that when I have a problem you step in and sort it out, not tell me I was speeding between robots and that's why you're not going to pay.”
- Warren Tucker, Motoring Enthusiast
A recent article by cars.co.za titled How technology is changing car insurance,
the car insurance industry has dramatically evolved to keep up with advancements in the motor sector.
As vehicles become more tech-savvy, the article notes that insurance companies are using various cutting-edge tools to enhance and streamline their operations and products so that they can offer updated offerings that address the current needs of vehicle owners.
The article goes on to say that new technological innovations in your car can impact your insurance in several ways, that's why it's advised that you revisit your insurance policy from time to time.
Cars.co.za provides some examples of common technology innovations and adaptations that could be present in your car and how this can impact your insurance:
- Telematics involves using internet-connected devices such as smartphones to collect, share and transmit data concerning a person’s driving.
For example, insurers can offer drivers smartphone applications that, when downloaded, can track their driving patterns and log if they speed, break or accelerate excessively or use their phone while driving. A person who drives with a high element of risk could pay higher premiums, while a person who is a more cautious driver would pay less.
" I am sure there are pros and cons as far as your insurance collecting all of this information.”
- Warren Tucker, Motoring Enthusiast
- Data analytics – By inputting and analysing large data sets for patterns and trends, insurers can create more refined and individualised risk models to provide policyholders with a more accurate risk assessment, which could affect their premiums.
- Artificial intelligence – This tool can provide customers with a time-saving and streamlined experience when interacting with insurers.
"All these systems get put in to mitigate the insurance company's risk, not yours.”
- Warren Tucker, Motoring Enthusiast
Scroll up to listen to the full conversation.