Changes with auto insurance in California has changed since the beginning of the automotive industry. New technologies have been integrated on vehicles, from driver assistance technologies to connectivity capabilities. Insurers and automotive manufacturers see in the industry and its current developments a multitude of challenges and opportunities. Besides the current roads are growing with advanced driver assistance systems, which modifies completely the variables on the roads.
CHANGES WITH AUTO INSURANCE IN CALIFORNIA on the services and technologies integrated on new vehicles drive a major change in auxiliary industries, mainly in the auto insurance sector. The automation prospect is also playing a big role in the changes we are currently witnessing in the auto insurance market. The costs normally derives from car accidents usually come from the following interventions:
- Treatment for car accident injuries
- Disability claims by accidents
- Vehicle replacement or repairs
- Incident investigations costs
- Lowered productivity of the family members who work less to take care of the injured parties
- Road maintenance after accidents
Vehicle owners need the insurance companies to monitor their driving behavior, in exchange for lower premiums. This demands for strict regulatory and legal adjustments but insurers have to think strategically because this type of insurance policy monitors and reports drivers’ driving behavior in real time to prevent any losses. Normally the insurance companies set the premium according to drivers’ variables, from the driver’s accident history to their age, gender, marital status and Zip Code of the garaging address. Living at a highly populated crowd means high possibility to get hit or hit somebody so Zip Code plays a big role on setting the Premium. To check your Auto Insurance rate click the Link 100% Free Quote.
The new entrants to the auto insurance industry are moving in the same direction, by tailoring insurance products and premiums to clients’ needs and behavioral parameters. In this note, we briefly describe why traditional auto insurers, who are accustomed to selling standardized products at premiums based on historical statistics relying on few demo-graphical and geographical parameters, should embrace these changes.