Telematics Improves Accuracy of Insurance Claims
Screenshot at Feb 27 21-43-02

Telematics Improves Accuracy of Insurance Claims

Nowadays smartphones are used by insurance companies to improve the accuracy of insurance claims by way of telematics.

Smartphones come in useful for much more than making and taking calls and sending texts. However, in 2018 smartphones will be used by insurance companies to help them improve the accuracy of insurance claims by way of telematics. 

Mobile Telematics Will Be a Revolution for Insurance Claims

Owners may not realise it but smartphones can tell how well you drive and this information can be utilised by insurance companies. Mobile telematics is a new era in insurance claims and one that has been described as a revolution in the claims filing process. 

Up until now, insurance companies do not do anything until a claim on the insurance has been made. However, if the driver has a device with telematics, such as a smartphone, and an accident occurs, it provides valuable information in real time to the insurance company. For instance, telematics might give them information about damage to the vehicle and how badly damaged it is, the chances of the occupants being injured and other vehicles involved. 

Telematics Helps Reduce Costs That Are Associated With Insurance Claims

Car insurance companies are welcoming the use of smartphones and insurance telematics as the system can help to reduce costs that are associated with insurance claims. 

Apps from insurance companies can be installed on smartphones that reward safe drivers. Drivers who take fewer risks are more likely to go ahead and use the software and it has been said that this could lead to a decrease in claims costs of around 57% for insurance companies

Apps such as these can also help drivers to improve on the road and change their driving habits, leading to fewer accidents. App can give feedback and score the driving habits; some have the built-in ability to be able to detect danger on the road and can even send a signal to emergency responders in the event of an accident. Drivers who score well get discounted premiums or other incentives. Apps can work alongside telematics devices and are generally more favoured by drivers due to the fact that almost everyone carries a smartphone. Insurance claims and smartphones will be the perfect match.

Telematics Can Be Used to Determine Insurance Quotes 

Smartphone telematics can be used to determine how much a driver pays for car insurance. The data can be used to assess risk, the acceleration and braking habits of the driver, whether the driver speeds, and many other factors, all of which go towards working out how much an insurance quote will be. 

Telematics will act as big brother, watching over drivers learning their habits, the time of day they generally drive, how they drive, where they drive and how long they spend driving. Insurance quotes in the future will no longer be dependent on generic information such as gender and age, quotes are going to be more accurate and twenty-first century. Quotes will be based on real-time data that is gathered for an individual driver and it will be used for easier and more reliable insurance claims. Smartphones and insurance claims will go hand in hand, a device millions of people already own and use daily will change insurance for the better. 

Telematics Is the Way Forward for Improved Accuracy of Insurance Claims 

Telematics is the future for improving the accuracy of insurance claims and the technology will be adopted by more insurance companies during 2018 than ever before. 

While apps are used today there are more tailored towards educating the driver and rewarding them. In the future, smartphone telematics will go far beyond helping drivers to avoid accidents and gain rewards. Telematics data will determine how much drivers pay for insurance and provide real-time data about accidents through advanced reporting, making claims more accurate and faster than ever before. 

What are you doing to make sure your company stays ahead?

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