Disruptive AI Technology Is Changing Car Insurance for the Better
Daniel Rooney
· 4 min read
When you think of car insurance, the words "cutting-edge" and "innovative" don't usually spring to mind. That’s how you’d describe industries like the tech sector and fields like artificial intelligence (AI), right? Well, thanks to the tech sector, advances in AI are transforming many industries.
While we're not yet living in a world of sentient machines, specialized computer programs have been developed to recognize patterns and learn from them. From this, programs can do things like answer your questions in Google or recommend a YouTube video to you.
AI tools are now commonly used in a variety of industries from manufacturing to finance. These tools are positively revolutionizing the auto insurance industry, which will benefit both drivers and insurance companies.
How car insurance companies use AI
AI goes hand-in-hand with big data. As businesses began to embrace digital technologies in the ‘90s, they started using and analyzing more data to make better decisions for the company. Tech companies continue to build sophisticated analytical tools that are used to evaluate data for actionable insights. These tools include machine learning AI applications.
The insurance industry has always relied on large datasets to help them make risk assessments, set coverage rates, and forecast financial performance. Now, alongside other industries, the car insurance industry has found itself handling ever-growing data and datasets from digital sources.
AI-powered analytics tools have helped insurance companies process data more rapidly and efficiently which saves them time and money. While that may not sound important to the average consumer, people do benefit from AI-powered insurance firms in several ways.
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How does AI for insurance companies benefit you?
Insurance companies use multiple datasets to develop driver risk profiles that are updated continuously. AI tools update your risk profile if there are any changes, and this can lead to better insurance rates for you.
As reported in
Robotics and Automation News
, AI tools are also now commonly installed in new vehicles and give information to insurance companies. This lets companies look at your actual driving behavior and helps them determine more accurate coverage rates.AI-driven software can help companies process claims more quickly, with fewer mistakes, which is critical for consumers. If you've just totaled your vehicle, chances are you don’t want to wait three or more days for your rental car to be approved.
Furthermore, AI also allows companies to offer you a more personalized experience. It can make your experiences with customer service much more efficient by making sure the service reps have all the information they need to help you.
How AI is improving the auto industry
One of the biggest complaints about car insurance is Getting a quote from an insurance agency can be a painstaking process, and you might have to manually compare dozens of quotes.
how much it costs
.Insurance companies want to assess your risk and ask you for a lot of information. Going through that process multiple times to get the best price is not something most people have the time or inclination to do.
But with AI and increased automation, companies can use a single insurance application to find you coverage rates from multiple companies. As your information changes, companies can easily reevaluate your driver risk and give you updated rates.
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