New technologies are arriving at a breathtaking pace, and there are all kinds of ramifications to these innovations. Many of the benefits will enrich our lives, and reduce our expenses.
But some aspects of these new technologies may have adverse effects upon certain behaviors and people, and that includes insurance coverage.
What are the implications for your insurance? Here are five ways that technology might affect your coverage, for starters.
1. Mobile tracking
Car insurance companies have led the way here, although they appear to have been the final kind of insurance to use our new GPS trackers, otherwise known as smartphones. For car insurance companies, the initial method of tracking people has been to install GPS trackers and usage computers that monitor how a person drives his or her car — similar to the way airplanes’ black boxes operate.
The theory and promise is that good behaviors (or, in other words, behaviors that reduce the probability of generating a claim on your car insurance) will be rewarded with lower rates.
Hopefully that promise will be kept, although if car insurance behaves like other industries, it’s possible that this technology won’t reduce anyone’s cost. Perhaps companies will simply freeze a few customers’ rates, while increasing everyone else’s.
It’s also possible this data will be sold to marketers and advertisers, which raises privacy concerns.
2. Cost
With the Internet making it easier to compare prices among agents and insurance companies, it’s easier than ever to find the policy with the ideal coverage and the right rate, instead of paying a company a ton of money and simply hoping they’ll come up with the compensation. Which brings us to our next point …
3. Ratings
With people’s increased ability to offer public compliments and complaints online, it’s very possible that insurance company ratings will be more accurate than in the past. And you’ll have easier access to those ratings, where you can see if the company you’re paying premiums to has a good history of paying claims.
4. Predictions
Better weather apps and technologies will make it easier to know what types of coverage you’ll need, across different seasons.
5. Agents
With social media and the increased availability of sites that help you find local insurance agents in San Diego, for example, it’s easier than ever to find respected agents and companies that are employed by your friends and community!
