Before you drive off the lot with a new car, you need to have auto insurance. In 2020, more than 945,000 registered vehicles occupied the roads and highways of the Diamond State, according to the Delaware [.]
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(Photo : Karen Condor )
We all know that safety technology in vehicles is saving lives and saving on auto insurance, but don t forget the role of GPS in telematics and usage-based auto insurance in doing that as well, such as pay-as-you-drive car insurance.
Technology has also positioned insurance companies to save potential and current clients time, from getting rate quotes to making the accident filing process easier, thanks to image analytics assisting with auto repair claims.
Review how technology is saving auto insurance customers time and money, and also see what the future holds: Driverless autos, yes. Flying autos, ever? Cheaper insurance? Read on.
Most states require some level of car insurance. But with the average cost of full-coverage car insurance at $1,674 a year, not everybody can easily pay.
Insurers do not factor income when determining insurance premiums; you don’t pay less if you earn less. You may, in fact, pay more, because of insurance-industry practices that critics say discriminate against people with lower incomes.
“Lower-income customers are often forced to pay more due to the use of zip codes and employment in insurance underwriting,” says Nestor Hugo Solari, co-founder and CEO of Sigo, an auto insurance provider that aims to reach immigrants and Latinx customers.
The auto insurance industry has long faced accusations of discriminatory pricing practices when determining rates. John Henry and Carey Nadeau want to fix that.
They are the duo behind a new auto insurance company, Loop, which uses technology and data collection to try to overcome those biases.
“I see insurance as a vehicle to deploy empathy at scale,” Henry says. “The more you take a closer look, the more you realize that folks are just tolerating what exists in this seemingly omnipresent industry.”
Loop is an insurance startup that’s trying to bring more equity to the rules of auto insurance. Instead of relying on metrics such as credit score, income, marital status, and education to create auto insurance rates all factors influenced by structural inequalities Loop says it will use two key metrics to give its customers a price: state of roads and driver behavior.