The auto insurance industry has been sort of flat for the last few years. However, there are innovative trends slowly emerging that could change the way insurance is priced, and underwritten. Auto insurance shoppers have been surveyed and questioned, and the results show that the interaction between car insurance companies and their customers MUST improve.
Over seventy-five percent of people who have their car insured don’t even fully know what their insurance plan covers. It’s not that the information isn’t available, it’s that customers are painfully unaware of what they are paying for. Having no knowledge of what an auto policy really covers can lead to customer dissatisfaction when an accident occurs. So companies have been spending more ad revenue over the past years than the previous decade, and engaging customers more through the internet.
The rise of UBI, or usage-based-insurance, is steady and growing faster. Across a small number of states, monitoring devices are being provided by insurance companies to monitor and track drivers’ performances. These devices do not have GPS, so they don’t track any location statistics at any time. They do, however, give your insurance company a detailed description of your driving habits, and could entitle you to discounts and rewards for good driving. UBI is also helping insurance providers understand the correlation between certain behaviors and car accidents. This will help providers to more accurately assess risk levels than they were before: and this will give customers who do practice safe driving habits the good prices they deserve. There is much speculation about how far the usage of UBI will go. Some believe it could become the new standard in insurance coverage, and it is being met with equal joy from professionals and good drivers looking to save on their annual premiums.
Online shopping is increasing the competition in the marketplace, and its popularity is spreading amongst consumers. In a recent survey of insured auto owners, over half said that they would be more likely to shop for car insurance online than with a local agent. The internet has simplified the insurance application process, allowing users to access prices and plans instantly, for free. The internet has been the way to find deals for over a decade now, and in the next couple of years, and car insurance is no different.
To take advantage of the best deals and new offers, email your insurance rep every once in a while. Sign up for your representative’s newsletter for special deals. Also, you can comparison shop and check around for who is offering rewards, or special plan features that can benefit you.