Our world is technologically much more advanced than before, and the automotive industry is undergoing a revolutionary transition with increasingly popular autonomous vehicles entering the market.

This is leading to a dent in the insurance industry since autonomous vehicles are equipped with modern features like radar sensors that have the potential to detect accidents or other unforeseen incidents on the road. This new-age technology allows such AI-operated vehicles to react in a more precise manner as compared to humans. This will result in a reduction in accidents, leading to a downward trend in claims within the insurance industry.

Insurance policies and non-autonomous vehicles: Is it time for change?

Auto insurance companies sell car insurance plans to owners to significantly reduce their risk of financial loss in case of an unforeseen incident such as an accident, natural disaster, theft, etc. To sweeten the deal, Bajaj Allianz General Insurance also offers car insurance plans with add-ons* such as depreciation shield cover, consumables expenses, breakdown assistance, conveyance benefits, engine protector and so much more.

Our world is technologically much more advanced than before, and the automotive industry is undergoing a revolutionary transition with increasingly popular autonomous vehicles entering the market.

This is leading to a dent in the insurance industry since autonomous vehicles are equipped with modern features like radar sensors that have the potential to detect accidents or other unforeseen incidents on the road. This new-age technology allows such AI-operated vehicles to react in a more precise manner as compared to humans. This will result in a reduction in accidents, leading to a downward trend in claims within the insurance industry.

Insurance policies and non-autonomous vehicles: Is it time for change?

Auto insurance companies sell car insurance plans to owners to significantly reduce their risk of financial loss in case of an unforeseen incident such as an accident, natural disaster, theft, etc. To sweeten the deal, Bajaj Allianz General Insurance also offers car insurance plans with add-ons* such as depreciation shield cover, consumables expenses, breakdown assistance, conveyance benefits, engine protector and so much more.

Claims are subject to terms and conditions set forth under Motor insurance policy.

Customers opting for AI-powered vehicles: The future awaits

While non-autonomous cars still rule the roads, consumers’ interest in AI-driven cars is increasing dramatically. This is leading to a paradigm shift within the insurance industry and companies are now depending on telematics to understand a driver’s behaviour before offering a premium based on their driving behaviour instead of just assumptions.

How connected cars are transforming the driving experience: Decoding human behaviour

Connected cars are equipped with advanced sensors, GPS, and communication technologies to elevate the experience of your transportation. These smart vehicles obtain real-time data that offers unprecedented insights into driver behaviour, road conditions, and vehicle performance.

Telematics and driver behavior analysis

As mentioned before, one of the most important ways connected cars are influencing the car insurance landscape is through telematics.

Telematics involve the collection and analysis of data related to driving behaviour, such as speed, acceleration, braking patterns, and even the time of day a vehicle is in use to determine the driver’s preferences.

Insurers can use this data to assess risk more accurately while tailoring insurance premiums based on individual driving habits. As insurance companies are investing in this technology, drivers have access to online tools that can help them monitor their driving habits.

You can call this a game-changer for the insurance industry as it shifts the model from traditional to personalised.

These new changes will impact the old regime and insurers will evolve as AI-driven vehicles gain more popularity.

Preventive maintenance and reduced claims

Connected cars also have the brilliant feature of maintenance via continuous monitoring of vehicle health. AI algorithms can predict potential mechanical issues before they get serious, reducing the likelihood of breaking down and even accidents.

This will lead to a decrease in road accidents and insurance claims and help drivers buy a more cost-effective insurance plan.

The role of artificial intelligence in car insurance

Just like in other industries, AI is the driving force behind the transformation of the car insurance landscape. Machine learning algorithms process vast amounts of data generated by connected cars, extracting valuable insights that were previously inaccessible to insurance companies.

Fraud detection and prevention: Honesty is the best policy!

With the involvement of AI, insurance companies will be able to avoid fraudulent claims, a longstanding challenge for the insurance industry. AI-powered systems can detect anomalies in claims data, identifying patterns indicative of fraud. Insurers can significantly reduce fraudulent claims, leading to cost reductions that can be passed on to genuine customers.

Even with the evolution of connected cars, insurance companies will always allow a driver to avoid financial burden in the case of an unpredicted incident.

Autonomous vehicles and liability auto insurance: Who’s responsible?

The liability will shift from an individual to the vehicle manufacturer, and car companies will be held liable for their setbacks in the case of an accident, etc. This means that car manufacturers need to heavily invest in good quality AI technology to offer flawless digital infrastructure to their customers.

Enhanced customer experience

Connected cars and AI can offer an enhanced customer experience while insurers can depend on real-time feedback to drivers, encouraging safer practices. The streamlined claims process, facilitated by AI, ensures that customers receive prompt and fair settlements while contributing to increased satisfaction and loyalty.

Real-Time accident notification and emergency services: Saving time, saving lives

In the unforeseen event of an accident, connected cars are equipped with technology to send real-time notifications to emergency services, resulting in quick reaction from first responders and potentially saving lives.

Insurers can use this data to accurately assess claims promptly, expediting the claims process and enhancing customer satisfaction.

For a smooth process, you can reach the experts at Bajaj Allianz General Insurance at their toll-free number (1-800-209-5858) or submit a filled form at the nearest Bajaj Allianz General Insurance office.

To simplify, here is a quick look at the pros and cons of connected cars:

Pros of connected cars:

  1. A safer drive
  2. Real-time traffic management
  3. Vehicle-to-vehicle connectivity
  4. Better for the environment
  5. In-built infotainment

Cons of connected cars:

  1. Easier for hackers to remotely control the vehicle.
  2. Cyber security issue of data protection.
  3. High cost of vehicle
  4. Increased cost of maintenance – Network coverage plans for optimal performance.

The new era of connected cars and AI is modifying the car insurance landscape. The shift towards personalised, data-driven plans benefits insurers and empowers consumers to have more control over their coverage and premiums. To get a better understanding of motor insurance and its features, visit BajajAllianz.com and experience a stress-free insurance process while contributing to a safer and more responsible driving culture.*

Claims are subject to terms and conditions set forth under Motor insurance policy.

Disclaimer

*Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

“This article is part of sponsored content programme.”

comment COMMENT NOW