Technology has come a long way since its inception. It has significantly impacted almost all industries, from being a luxury to a necessity. While the automobile industry has seen massive advancements in autonomous driving, the Insurance industry has also started providing Motor Insurance Policies charging personalised premiums using various telematics solutions.
Conventionally, during Car Insurance renewal, companies calculate the premium by considering the car model, among other factors. Due to this, if two people have the same car model, their Insurance premiums are most likely to be similar. What happens if one of them is a safe driver? Should they still be charged equal premiums? Telematics Car Insurance comes into play here.
How does it work?
General Insurance companies use various telematics devices and attach them to the car’s GPS to keep track of driver behaviour. The device collects data like the distance travelled by your vehicle, its average speed, fuel consumption, fuel efficiency, and driver safety. The collected data gets transferred to your phone and sent to your insurer using your cellular network.
The company analyses the received data and calculates your premium upon online Car Insurance renewal. Thus, your premiums are lower if you are a safe driver.
Blockchain technology
All companies use this in their current working processes, whether for issuing a new policy or Car Policy renewal. They quickly access all the details regarding the vehicle, such as owner details, telematics records, smart card details, etc. As a result, insurers expedite your claim processes and authenticate the details easily.
How to buy them?
All vehicles must buy and renew Car Insurance online in India, according to the clause in the Motor Vehicle Act 1988, failing which they face a penalty or imprisonment. Visit the provider’s app or website to buy the policy, enter the details, pay the premium online, and submit the online form. Telematics Policies are widely available. However, they have gained popularity in India only recently.
With technological changes and processes, upgrading the system is beneficial for everyone, especially the millennials. All industries strive to meet the demands and grow over time by offering Car Insurance renewal online.
Smartphone applications
Most companies offer a mobile app to buy a new Four-Wheeler Insurance Policy or renew the old one. By opting for telematics, the devices attached to the car get connected to your smartphone over a wireless network, thus working as a vehicle tracking system. Also, contact the insurer over a video call for claim justification.