How will Car Insurance Change in the Future Because Of Technology?
Technology has had a major effect on car insurance in the last few years. The Internet has made it easy for drivers to find cheap policies, and has forced many providers to compete in new ways. New car insurance discounts and better rates have been the result of these changes. However, the industry’s not done changing due to new technology.
For example, several states are experimenting with in-car systems that log the number of miles that a policy holder drives. These systems can be used to offer per-mile insurance coverage. Drivers who only spend a bit of time each month on the roads will appreciate these systems, which offer them much lower rates and much better coverage. Frequent drivers probably won’t feel the same way if per mile auto insurance catches on.
The introduction of traffic control cameras has led to an increase in speeding tickets and red light tickets. Most towns that use these cameras use them as part of city ordinances, so their effect on car insurance rates hasn’t been very pronounced yet. In the future, it’s very possible that states will adopt traffic control cameras as a way to increase revenue and keep the roads safer, and more traffic tickets will mean higher auto insurance rates on average. However, cameras could also lead to a smaller number of car insurance claims, which would have the opposite effect.
Texting while driving has led to an increased number of accidents, while improvements in computer technology have improved the algorithms that insurance companies use to figure rates. Car safety improves each year due to new technology like side airbags, and future safety tech can lead to lower rates. Other improvements to cars, especially to anti theft systems, can also have a significant effect. Some car manufacturers are even experimenting with self-driving cars; these could drastically decrease the rate of accidents, and perhaps even eliminate the need for car insurance overall. As a whole, better technology will lead to better car insurance rates for drivers in any part of the country.