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How IoT can streamline the car insurance industry

The Internet of Things (IOT) is a technology that is being readily used in the car insurance industry these days. According to IBM, the Internet of Things is the concept of connecting any powered device to the Internet and to other connected devices. Among other applications, it allows for example an embedded car system (data logger and transmitter) to send collected data to the AI program of an insurance agency to evaluate distances travelled by the car, driving behaviours and patterns, ect. Basically, it allows real time data to be delivered to the insurer every time that you get behind the wheel.

Premiums

In the old days, when you needed to get insurance on your car, you had to go and wait in a small office, hoping that the next available agent called your name. You then had to give a ton of information to them so they could plug it into the system. The premium would then be factored out by placing you into a generic pool of consumers.

Thankfully, those days are gone. It is now possible to do everything from the comforts of your own home. With the Internet available to everyone in the nation everything can be done using a mobile device, laptop, or home computer. If it can hook up to the internet, it can be used.

Contracts can be filled out, signed, and paid for in a matter of minutes. The great thing about it is that you will know the amount of the premiums before you have to sign any paperwork, which allows you the option to compare car insurance rates between as many companies as you want.

Accidents

Accidents are an aspect of driving that none of us want to ever must deal with. Unfortunately, they happen every day. It does not matter how careful of a driver you are. Things out of your control can happen. Drunk drivers, for instance, cause a substantial number of accidents every year. It is not something that you can prevent. It is not something for which you can prepare.

IOT solves the issue of who is at fault. The device used to record and analyze your driving skills before, during, and after the accident will clearly show who is at fault. This makes it easier for the officers investigating the accident to come to a decision. Once the paperwork is filed, your insurance company will be able to pay out the claim. The faster it is paid out, the quicker you will have your car repaired, or replaced.

Conclusion

The Internet of Things is a valuable asset for you, and the insurance carrier. The Australian Bureau of Statistics states that over the last year there were 20.1 million registered cars. That is a lot of vehicles on the road that could potentially cause you to be in an accident. Sensors in your car, attached to the computer outlet, or on your phone, can quickly analyze data, with the help of an AI operating system, to determine everything needed during the investigation, and by the insurance companies to determine the damage and a payout, if one is being sent.

Use this technology to your advantage. Get personalized rates based on your driving habits. Keep the premiums down by driving safely and defensively. If the worst situation happens and you get into an accident, the monitoring device could save you a lot of wasted time fighting with the occupants of the other vehicle about fault, and who is responsible to pay out for the damages and medical bills.

Using the IOT for all automotive policies and claims will be the new normal way of conducting business within the next few years. Technology moves forward at an extremely fast pace. You need to be aware of this and stay ahead of it.

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