The auto insurance industry has long been associated with tried and tested traditional methods. With the onset of IoT, it’s now possible for objects to send data to the cloud, which allows us to analyse it, regulate usage, and make decisions based on it.
This entire industry previously struggled with creating an accurate risk profile of a driver. However, as consumer-grade cars are now being equipped with IoT technology, it’s possible to measure certain things that were not measurable before, like the frequency and the scope of overstepping the speed limit boundaries, to name one example.
IoT technology also allows us to measure the average speed, brake usage, and other similar variables, all of which can be used to calculate how much of a risk a certain driver represents. Based on this, careful and attentive drivers may potentially be charged less for insurance than a driver who has a history of accidents and reckless driving.
Of course, there are other benefits to this, such as being able to detect a manufacturing defect in a vehicle component before it leads to an accident. However, should an accident occur for any reason, IoT-powered vehicles will be able to report it to the insurance company in real-time. This will allow them to send roadside assistance as soon as you require it, without you having to lift a finger.
Finally, with the help of IoT, it will be possible to track the status of repairs, which will allow an estimate of the claim amount the insurer is likely to settle. The likelihood of insurance fraud will also be smaller.