The Future of Insurance with Smart Cars

The Future of Insurance with Smart Cars

​With more cars connected to the web, helping us navigate, talking to other cars as we zoom down the road and sometimes even driving for us, it won't be long until our autos can also make an insurance claim for us after an accident. 
Consider that more cars are being built with sensors and technology that allows them to communicate with external parties. It's not hard to imagine that the car could communicate immediately with emergency services and your insurance company if there is an impact. 
The emergency authorities could be notified in real time with detailed information about the condition of the vehicle and the location of the accident.
Insurers are currently teaming up with tech firms and are developing programs that would prompt your vehicle to report immediately to your insurance company's data center if it's been in an accident, which could start the claim. These programs could also:

• Arrange for immediate roadside assistance.
• Arrange for a replacement vehicle or rental.
• Provide a data-rich first notice of loss to your insurance company.
• Assess the vehicle damage using onboard sensors and using predictive analytics to determine the cost of repairs.
• Create predictive estimates and parts requirements lists, and then send that information to dealers or parts procurement companies.
• Identify which shop is best positioned to repair the vehicle, based on shop scorecards and availability.
• Keep you informed of what is happening at all times, via mobile communications.

 
Right now, all of the technological parts of this puzzle are in place, and insurers are working with tech companies on apps to make it happen.
Pioneering partnerships
Insurance companies are also currently working to create partnerships with auto manufacturers to make all this a reality.
The most notable of these partnerships involves General Motor's OnStar system, with the auto giant having secured relationships with about a half dozen auto insurance companies already in the US. 
In Europe, BMW and Allianz have a similar partnership.
The evolution is ongoing, but in the next few years, as cars become smarter, it won't be long until we see the next stage in development for car insurance that will make your life easier and also give you an added sense of security.