In this blog, we would like to discuss the state of Car Insurance as we enter the new decade of the 2020s.
Usage-Based Car Insurance
Usage-Based Insurance or Telematics allows the Insurance Company to monitor your driving habits so you can qualify for safe driving discounts on your Car Insurance Policy.
Insurance Companies use a plug-in, a downloaded app, or a reporting form to measure how many miles you drive, your average speed, what time of day you drive, and whether you drive in stop and go traffic.
Depending on the results, a driver can qualify for up to 30% discount on their car insurance. Each company has its own program:
- Travelers have a program called Intellidrive.
- Progressive’s program is called Snapshot.
- Safeco’s program is called RightTrack.
- Mercury offers low mileage discounts through their Real Drive program.
The rise of attorney advertising
You’ve heard the ads on radio and TV: “So and so got me $300,000.”
“The insurance company is not your friend. You need an attorney to collect all you’re entitled too.”
“Money matters.”
These ads do a couple of things. They encourage people to sue, not only the other party in the accident, but also their own policy. And they don’t do this for free. Attorney involved claims always cause higher claim settlements.
The insurance company pays the claim and also pays the attorneys’ fees. Then passes along the cost to their policyholders in the form of increased car insurance rates. And if the attorneys aren’t satisfied with what they can get from the insurance company, they’ll go after your personal assets.
Whatever you may think of attorneys and their practices, claims are going to be settled for higher and higher amounts. It behooves you to have enough coverage in your policy, so they won’t go after your personal savings.
How much liability coverage should you buy? As much as you can afford.
ride sharing
With the advent of Uber and Lyft, ride sharing will become normal for most people in the 2020’s. And more and more people will earn extra money by becoming part time or full time Uber drivers.
If you decide to be a Lyft or Uber driver, make sure you endorse your policy to allow for this.
Here’s how it works: Your personal car policy will insure you until you turn the Uber or Lyft software on. Once you accept a ride, the Uber or Lyft policy will start covering you and your personal auto policy will stop covering you.
Without this endorsement, you’re putting yourself at risk – some companies won’t cover any accidents occurring when you go to work as an Uber or Lyft rider. Be safe and not sorry. Tell the company and add the endorsement.
driverless cars
We’re all aware of Teslas and other cars that have driver-less features, and the dawn of completely driver-less cars will arrive in the 2020’s. Companies are still formulating how to insure these cars.
Some are looking at having insurance included with the purchase of the car because many lawsuits will be dealing with defects in the manufacturing process.
But what if you buy a used autonomous car? These cars will also feature monitors in and around the car, so how will this be used in claims-paying.
Insurance companies are working hard to be ready when these cars arrive, but will you be ready?
conclusion
Car Insurance in the 2020’s will look very different than it did in the 2010’s as society reacts, to Usage-based telematics, attorney advertising, ride sharing , and driverless cars. Technology will be a game-changer in many ways, and the best we can do is to stay informed and change when we need to.
At Cronin Insurance, we will do our best to keep you informed, so that when these changes come, you’ll be ready.
Low rates, Choice of Companies, and Personal Advice.
Cronin Insurance is the Wise Choice.
