There has been a lot of media talk in this past year about the advances being made in automobile technology, both on a personal level as well as a commercial level; not only are driverless cars a very real possibility, some are wondering if we’ll even see driverless commercial vehicles. With the changes facing drivers in both sectors, what does this mean for your personal Sussex County car insurance policy?
Driverless technology is just one of the advancements being made in the auto industry. Telematics, which is a wireless technology that allows cars to connect and communicate with enterprise applications, has attracted recent attention among insurance carriers worldwide. These systems will combine GPS systems with on-board diagnostics in order to record and map exactly where a car is and how fast it’s traveling. With this information, it can cross reference to see how a car is behaving internally.
Perhaps the biggest advantage of telematics, which the U.S. Department of Transportation is considering as required system by 2016, is an increase in driver safety. Due to the safety possibilities, some auto makers such as Toyota, Volkswagen, and Ford are already actively developing similar systems. Safety is not the only benefit though.
By transmitting data related to vehicle use and driving behavior, insurers will be able to use this information to better price their policies since the precise performance of the vehicle and driver can be accurately measured. As a result, certain groups- like young drivers- could be offered a more affordable cover based on their monitored usage.
The processing and management of insurance claims could also see a change due to telematics. As soon as an accident occurs, insurers will be notified and will instantly have sufficient detail, which will allow them to make an accurate estimation of who is at fault. Consequently, they’ll be able to facilitate a quicker settlement.
The benefits of this technology don’t end with safety and affordability. Telematics could also potentially prevent insurance fraud, and improve customer service. How this will affect your Sussex County Auto Insurance policy remains to be seen, but for now we can all look forward to the positive changes that new auto technology will soon be bringing.
At Tri-State Insurance Agency we understand the risks of owning and operating vehicles. Our Tri State Auto Insurance specialists have extensive experience protecting drivers and vehicles from the risks they may encounter on an off the road. From Sussex County Personal Auto Insurance to Commercial auto insurance, our specialists can help secure comprehensive vehicle coverage to help protect vehicles from damages sustained through flooding and weather, theft, vandalism and a host of other non-accident hazards. To learn more, give us a call today at (888) 990-0526.