Auto technology is advancing quickly. New systems and enhanced models are hitting the showrooms at a fast rate.
From car sharing to autonomous vehicles, significant changes are in the works for transportation. Yet, all these changes impact the auto insurance industry as well. In some cases, they may even impact the amount individuals pay for car insurance.
What Technology Will Impact Auto Insurance?
Check out some of the types of innovation that could impact car insurance premiums:
- Vehicles are becoming increasingly network-connected. This connectivity is increasing the amount of risk present for cyber-related threats. It is now possible for hackers to hack into vehicles to gather information about people. Someone's privacy and identity might come under threat. This could increase the need for cyber liability insurance in auto insurance. This is especially true in the area of commercial truckers.
- Telematics themselves are causing some concerns over privacy. Telematics allows for truck owners and companies to monitor and track vehicles. From the standpoint of insurance, this is a good thing. It reduces the risk that a theft can occur since vehicles can have advanced tracking. From the driver point-of-view, it could increase privacy concerns.
- Commercial auto policies may see price changes for individuals based on actual data. Certain vehicles have comprehensive connectivity. This can allow the police, the vehicle owner, and, in some cases, third parties to tap into the actions of the driver. It could help better clarify who is at a high risk of causing accidents. This may mean companies need a higher level of liability insurance if they maintain high-risk drivers.
- Autonomous vehicles, including large trucks, are now hitting the road. Many companies have found these vehicles to benefit their costs needs. Yet, there’s still some concern over how autonomous vehicles affect accident liability. Who is to blame when an autonomous vehicle causes or has an accident?
It’s likely we will see a significant amount of change in the commercial auto insurance sector. Change will likely come as technology changes and develops. It’s likely the industry will see more accuracy in assigning blame and in managing assets.
Overall, this could help to create more accurate risk portfolios. A more definite portfolio might translate into affordable premiums for some drivers. There is no doubt that technology is changing this industry.
Lupton & Luce Inc has your auto insurance needs in mind. Call us at 631-727-4114 to request a free quote on an affordable policy.