While few people think of auto insurance when they’re not shopping around for it or paying for it, car insurance is changing all the time. Influenced by things like technology, consumer trends, and the automotive industry, the insurance market rises, falls, and shifts according to a vast assortment of factors. And when it does, it often has a pronounced effect on insurance customers.
Now that we’ve transitioned into 2017, many of those changes have become evident, and people are starting to understand what they can look forward to in the coming year.
3 Big Auto Insurance Changes to Look for This Year
From changing technology and communications tactics to expanded coverage, here are the three biggest things customers should be on the lookout for in insurance policies this year:
1. Lower Car Insurance Rates
Provinces like Ontario have enjoyed dramatically decreased auto insurance rates recently. According to insurancehotline.com, Canadian car insurance rates decreased by an average of .14 percent in 2016, while some dropped by more than 3.13 percent. This stands in opposition to the previous quarter of the year, which saw rates increase by a percent and a half.
While it’s always possible for rates to increase in the near future, insurance professionals are reporting that, of the ten companies who changed their rates last year, none intended to raise their rates.
In the coming year, experts are encouraging customers to shop around to find the best insurance rates. In addition to the fact that this offers customers the opportunity to find rates that are lower than what they were previously paying, comparing car insurance quotes is a great way to locate a policy that suits unique sets of needs and circumstances.
While many of the changes affecting auto insurance are technological in nature, this one has the potential to put some cash back into consumers’ pockets and make purchasing auto insurance easier in the coming year.
2. Digital Proof of Insurance
While insurance companies have been providing digital proof of insurance for some time, the trend has become more mainstream in recent years. Today, anyone stopped by a police officer for a minor traffic violation can expect that pulling out their phone to demonstrate coverage will be just as acceptable as fishing through the glovebox for a physical insurance card.
Digital proof of insurance has made it easier for drivers to ensure they have evidence of insurance with them at all times. That said, though, experts recommend that customers still keep a paper copy handy, just in case.
3. Insurance Gets a Telecommunications and Informatics Makeover
In the insurance policies of yesteryear, drivers paid according to set rates, with no hope of getting a discount for safe driving or good behavior. Today, that’s a thing of the past. Thanks to a rise in the use of telematics devices, drivers are getting huge discounts for driving safely and avoiding accidents.
Telematics is an industry that draws on both informatics and telecommunications. To utilize telematics in insurance policies and payment strategies, many companies are offering drivers devices that track their driving patterns and report back to insurance companies. If the driver stays safe and practices responsible driving habits, he or she may qualify for discounts on their monthly payments.
A critical step in the process of making auto insurance more personal and tailored, Telematics is changing the way people relate to their insurance and taking proactive steps to reward individuals who keep themselves and others safe on the road.
Auto Insurance for the Modern World
While it’s easy to see the way industries like technology and education change in response to the shifting dynamics of the world around them, the shifts in the insurance industry often take place under the radar. In 2017, however, these three significant changes will become more and more apparent.
While telematics makes insurance more customized and rewarding, digital proof of insurance and ridesharing protection allow insurance policies to expand to accommodate modern-day transportation, in all its various forms.
This, in turn, makes it easier for customers in Atlantic Canada and beyond to access simple, straightforward insurance policies that work for them. When insurance shifts to accommodate technological and preferential changes in the industry, everyone benefits!