We are at a time of high inflation and increasing expenses. So, looking to technology to curb these costs is not a bad idea. A widely ambitious motto is used each time a new idea is introduced. Probably nobody knows what it means but they keep saying “we will make the world a better place”. So, can AI be utilized by companies to offer you cheap car insurance? I think it is a fair question to ask under the circumstances.
What Is Expected of Artificial Intelligence?
The idea behind it is that machines will be able to constantly learn and come up with better solutions once they are set up on a path. The last part is very important because still it will be a human who will program to tell them what to look for in the first place. Therefore, they need to be set on the right path first.
If we go back to the example of automobile insurance companies the question is how would they want to use it? Would they be looking for solutions to reduce their costs and claims and increase premiums without losing customers. On the outset, it would be the agenda in the first place because they are profit oriented organizations with shareholders.
Do Auto Insurers Push Limits with Premiums?
There are many surveys that show they would calculate as to how far they can push premiums before policyholders start walking away. So, there is enough evidence that this would be the first area they would want artificial intelligence to provide answers, along with reducing claim payouts and costs incurred while repairing accident damaged vehicles.
In that thought chain, they are well known to squeeze auto body garages to a point that it is impractical for them to do a good job with the budget they are offered. So, it may be a while before they turn their attention to lowering vehicle insurance premiums by using technological advancements.
Is There Hope for Cheaper Rates
Saying that, there is one area that comes to mind. The thing is that good drivers are always in demand in the industry because they keep paying for years without any questioning and making a claim. That is why every company tries to come up with smart ideas to entice them before their competitors do and the price is the most influential tool in that aspect, along with better policy coverage options.
So, good drivers would be the ones that would benefit from artificial intelligence first. How about the problematic motorists who are not well off and don’t have good records or credit scores? Unfortunately, if there is a powerful tool in their hands underwriters would try to weed them out so that they can avoid large claims.
In conclusion, there may be good news for some and very bad for others on the horizon. In any case, car insurers will not be moved until most of their customers start looking for cheaper auto insurance and switching when they find one. Only when they realize that people are well informed and will push back can they try harder to help them keep their business.