For many Oregonians, car insurance is just another essential thing in life. Residents tend not to think too much about it, apart from the cost. But, within auto insurance companies operating in the Pacific Northwest, big changes are happening. Creative options like pay-per-mile car insurance are transforming the way insurance is sold and managed in The Beaver State. Technology plays a key role. This is how.
The internet, apps, and websites
These days, it seems that everyone has an app, or website, for everything. You know we’ve reached peak internet when you can compete with over 10 million people to milk a virtual cow!
But, aside from dubious entertainment, technology has changed our lives in more important ways, such as how car insurance is sold and administered. These include:
1. paperless and remote options
Some insurance brokers still operate a 19th-century business model. Back then, business was invariably conducted in person. Agreements were sealed on a handshake. Terms were written on paper. Insurance arrangements lasted for lifetimes, binding families to brokers and tied insurers, even when it did not make financial sense.
But things have changed.
The internet, and in particular, websites and apps, has allowed insurers to break free of the broker model and sell directly to consumers. This progression from a B2B (business to business) to a B2C (business to consumer) model has enabled some insurers to enjoy staggering growth, facilitate consolidation, and change the marketplace permanently.
Customers have benefitted from this increased reliance on technology by enjoying more convenience in the way they shop for car insurance providers. For example, online tools enable them to compare prices. And paperless, remote purchase options allow them to buy insurance from companies throughout the state. This matters in Oregon, a state where more than a third of the population lives in rural and frontier areas.
2. Pay-per-mile car insurance and custom options
Technology has also helped some auto insurers develop new products. For example, motorists in Oregon can now plug a tracking device into their car’s onboard diagnostic port (known as an OBD-II port). This enables the insurers to measure the miles driven and offer insurance based on that (among other factors). This pay-per-mile insurance can result in significant costs savings for people who use their cars less than average.
Auto insurers can also use machine learning technology to quote for custom options. This means that customers get to choose the insurance which is right for them, instead of paying more for a policy that covers situations they may never encounter.
3. remote claim support
When filing claims, customers now have the option of dealing with everything remotely, instead of seeing a broker. In part, this is because powerful smartphone cameras and apps have changed how insurers assess damage. Now, instead of waiting for the insurer to send out an assessor, customers simply take photographs and upload them for insurers to approve repairs. This saves time and money.
We might take it for granted, but car insurance technology really does help make our lives better.
