The Latest Car Insurance Innovations for Consumers

Couple signing insurance papers

The insurance industry is evolving, in real palpable ways, making it easier for insurers to get their claim settlements and determine their car crash risk by using technology.

With over 1 million of deaths caused by car crashes every day, and 20-50 million left with disabilities and injuries, there’s no doubt that the insurance industry is getting busy trying to make progress towards helping people more.

Prevention still plays an important part. While there are factors you can’t control (e.g., weather, car defects, and other driver’s behavior), there also dangerous behaviours you can avoid.

For example, around 50% of fatalities are caused by alcohol consumption. In the last few years, texting and consumption of marijuana were the leading cause of car accidents.

How Does Car Insurance Work?

Due to high risks, not buying car insurance isn’t even an option. You may want to save a few pennies, but even the best drivers can get into car wreck. If you want to find out how car insurance works, read on.

Insurance and finance companies aren’t the people who determine if you should have insurance or not. The government does, and there are specific laws made for each state that outline the minimum requirements for insurance.

For example, let’s take this scenario. If you are moving from Texas to Arizona, you have to check to see if your insurance meets your new location’s minimum requirements.

In Arizona, car insurance starts at $15,000 per person (injuries) and $30,000 per accident. However, covering only the minimum requirements is not enough most of the time.

If you want to bring your premiums down, you need to work with someone who knows the laws and can negotiate your plan without making big compromises. While it’s easy these days to get insurance online, it’s also far more expensive.

A skilled insurance agent has at least 30-40 insurance companies that he or she is in contact with, as well as the connections, negotiation skills, and legal knowledge needed to create customized plans at a lower price.

Agents can easily negotiate an inexpensive insurance plan, as they buy from the same companies all the time and their loyalty is rewarded. But if you try to go by yourself and negotiate directly, you are simply a new customer that doesn’t bring much business.

How Technology Can Calculate the Risk of Getting in a Car Crash

Statistics are already used by insurance companies to determine prices for plans.

For example, if you are a 20 year old man who drives a sports car, you will pay more than a 40 year old woman driving a sedan.

Why does this happen? Based on statistics, women and drivers that have more experience on the road are less likely to be involved in car crashes.

But you may be thinking that generalizations negatively impact the exceptions to the rule.

For people like this, there are sensors that record driving habits to determine what kind of insurance they need. These devices will create a record of your driving habits, and based on this they will get either a higher or a lower insurance plan.

Insurance Plans for Rental Cars

Since public transportation is sufficient in most cities, many drivers prefer to use a car occasionally, not on a daily basis.

Cuvva launched an application that helps drivers who use a borrowed car buy insurance, even for as little as an hour, directly from their app.

To get started, all you need is a smartphone and a photo of the car that you intend to use.

Quick Payments

Allstate is a company that eliminates the notion of a claims check and saves you time by sending money directly to your card. The only downside is that you need a Mastercard for this to work.

The process is quite simple. You can sign up for this service using a Mastercard debit card and your email address. After you negotiate the claim with the insurance company, you will receive the money almost instantly.

Since everyone else stopped sending checks, it looks like the insurance industry is adapting as well.

Why Picking the Right Insurance Should Be near the Top of Your List of Priorities

You may think that a car crash will never happen to you, simply because you are a good driver. Unfortunately, there are factors you cannot control.

Speeding and being under the influence of drugs and alcohol aren’t the only dangerous behaviors that lead to the majority of car accidents. In fact, there are over 25. For instance, did you know that driving during the night is on the list?

For more information about how you can get car insurance at casa grande, feel free to contact us or leave a comment below.

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Steve Gebhardt

Gebhardt Insurance Group was honored by AAA Insurance for being the top New Policy Agency in Arizona for 2013 and achieving the "Emerald Achievement Award."

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