Will 2021 See a Breakthrough on Connected Car Insurance?

Next year could be the one where all the dots are joined up on car insurance. In-car ADAS systems and app-based telematics are converging to provide more data than ever. Then there are fixed telematics systems that act as a fourth emergency service, and effectively meter your insurance costs by the mile, rather than lock you into an annual policy. Here’s the news from ITS;

ITS Telematics Solutions, the connected car data management experts, data shows that more drivers are starting to understand the benefits of connected car data and it is influencing how we are buying new vehicles and choosing our car insurance sector. In 2021 many more drivers will be benefitting from connected car data solutions such as proactive First Notification of Loss (FNOL) service along with tailored Usage Based Insurance (UBI) insurance solutions such as Pay as You Drive (PAYD) and many other value-added services.

The connected car data experts have been monitoring data to highlight how UK drivers are changing how they use their vehicles on a day-to-day basis, with mileage dropping every year since 2002, many more drivers opting for leasing vehicles with a limited annual mileage, electric car sales increase by more than 250% and millions of us now working from home.

Proactive FNOL is a cutting-edge solution that can benefit drivers, vehicle manufacturers and insurance firm. ITS offer an advanced crash algorithm that alerts the vehicle manufacturer and insurance firm when an incident happens. This ‘alert’ includes data showing the location of the incident, speed of impact and predicted damage, meaning the insurance firm can react immediately to the situation without the driver having to inform them.

The Connected car data market is expected to grow by 270% over the next two years and this data is starting to be adopted by many organisations along with drivers as it allows us to understand how we are using vehicles, traffic trends, and how we are using roads, town centres and even parking.

Neil Beckingham, COO at ITS, commented, “As we monitor connected car data it clearly illustrates that vehicle manufacturers, insurers and retailers need to evolve and offer solutions that match driver requirements by taking advantage of all the benefits this data can offer. Drivers continue to embrace this technology and it would seem that earlier adopters of these advanced solutions will lead the way in the future of car manufacturing and insurance solutions.”