How Is Technology Changing Insurance And Making It Cheaper?

Technology is helping to change the face of the insurance industry as we know it. As technology advances, so do the policies and the products on offer.

The technology on offer ranges from telematics insurance, to driverless cars, to apps that offer a new kind of insurance.

In addition, due to a number of factors such as the IPT and Ogden Rate changes, the cost of insurance is on the rise.

Many are looking for ways to help bring their premiums down. Especially when it comes to their car insurance.

This is where new technology comes in, helping drivers bring down their cost of insurance. It is also making driving an option where it may not be affordable for some to be on the roads. This is especially the case for new or young drivers.


Telematics technology makes car insurance cheaper


The most popular way to reduce premiums in recent years with young drivers is to have telematics installed. Or as it is also know, a black box.

Telematics insurance is generally a product for new or young drivers. It monitors their driving style such as speed, acceleration and braking, and even the time of day they drive. It then rates the driver and if they are a bad driver it could lead to their policy being cancelled. However if they are a good driver it leads to rewards such as lower premiums.

Many see it as a great product as it encourages young drivers, or drivers in general, to be safer and adapt good habits.

However the downfall in is the limitations it brings. For example many telematics policies limit you to the time of day you can driver. This is no good for those who may work night shifts therefore eliminating telematics insurance as an option to them.


Introduction of the dash cam


This is where the dash cam comes in as an alternative.

Many are familiar with a dash cam, from videos that circulate online. And as you may know they are not just for cars. Many bikers, cyclists and taxis use them too. This is because in the unfortunate event of a crash, dash cams become incredibly useful.

The footage gathered on a dash cam can be used to help make accurate claims, and place fault correctly. It also can be used in evidence in the event a case may go to court. This is especially important for businesses such as taxis or couriers.

By helping to make claims more accurate it means that it helps to prevent drivers being wrongly accused. Additionally it also helps to prevent false claims and insurance fraud. This overall brings down their premiums.

It is also said that they help to improve driving just like telematics do. Because they can also prove that you are at fault in an accident it means drivers are likely to be more careful. This makes them a more accessible option to everyone, no matter what their lifestyle. And for some, a much better option than telematics.


Think a dash cam is a good replacement for telematics insurance? Let us know in your comments below!