Auto insurance has evolved surprisingly little since the original inception of modern policies, even though transportation itself has seen various pretty big jumps over time. It’s clear at this point that we need to adapt the systems that we’re relying on if we want to be better prepared for the future, and there are lots of things that have to be considered on that front. Auto insurance is a complicated topic to begin with, and there are some factors about it that are not exactly aligned with the current situation.

Changing the System

Some insurance companies have been actively experimenting with new ideas though, and we’re already seeing some results on that front. While it will probably take some time for these ideas to see the kind of adoption that will really indicate whether they’re worthwhile or not, the important thing is that we’re at least seeing some attempts in that direction. One thing that’s been pointed out multiple times is that it’s perhaps unfair to charge all drivers similar rates despite the wildly differing usage statistics across the board. But until recently, it was all but impossible to do anything about this due to the limitations of the technology that was available at the time.

Leveraging Modern Technology

Not anymore though – with the help of modern tech like smartphones, a lot can be done to ensure that drivers are being charged fair rates that correspond more adequately to their actual usage. Smartphone tracking apps are now being explored as an option in this regard, allowing insurance companies to get a clear idea of what drivers are doing with their cars and how often they use them, all without having to require any complex paperwork or other similar factors.

Why It Can Work

There are many reasons why this system can work very well, and there is already a lot of active research in this area. One of the most notable factors is that pretty much all drivers have a smartphone in their pocket at all times nowadays, making for very simplified tracking that doesn’t require any special interference. This can also allow insurance providers to simplify other aspects of the system for the drivers insured under them, leading to even greater reductions in the overall complexity across the board. Of course, this will come at a certain small price – drivers will still need to get used to working with the new apps instead. But many have argued that this will still be better than the current system that relies heavily on paperwork and leaves plenty of room for human error.

Privacy Concerns

A major concern that has been brought up with regards to this new system is the privacy of drivers involved. A system that tracks one’s every move for insurance purposes has some unpleasant implications to consider, and things can get even messy when we consider issues like riding along with someone else, imprecise GPS measurements, software issues, and more. Of course, many of these problems can be ironed out over time, but it will likely take a while until we’ve reached an adequate situation where we can fully trust what those apps are doing. And until then, people are going to be very suspicious about the situation and a lot of misinformation can easily spread around.

Additional Concerns

Others have voiced their concerns about how the data is going to be used in the long term, and whether this kind of collection might harm random users because they’ve been lumped into the wrong groups by the aggregation engine. This is definitely something that will have to be sorted out before we move forward with the idea, but it does seem like there’s already a lot of effort being put into this. Data collection and aggregation are already hot topics in modern society, and it’s very likely that they will become even more prevalent in the future if these kinds of ideas take off. It will be interesting to see how the discussions will evolve and what kinds of arguments will be brought to the table. Because it definitely seems like many people have a lot to say in this situation, and their opinions should not be disregarded.

Is This Inevitable in the Future?

And in the end, it’s important to consider just how much we can avoid this at all if we decided that we don’t like it. Because from the looks of it, it seems like tracking of this type is going to be all but inevitable in the not too distant future. It’s going to take some time for those systems to establish a proper place in the market of course, and there are lots of issues that will have to be overcome first, like we described above. But this will happen eventually, and it’s important to be prepared for it.

Exploring Alternatives

Are there other options for providing fair insurance policies for everyone without sacrificing other factors like privacy? Some companies seem to be putting some effort into answering that question as well, but it will likely take a while to see an actual solution. It makes sense too – there is a bit of opposition from the companies that have been investing into the new tracking schemes, and this will likely remain the case for some time in the future too. That shouldn’t be discouraging to anyone invested in this topic though – these are some normal hurdles that have to be overcome in developments like these.

The important thing in the end is that we’re at least making a conscious attempt to change the situation, and to make it fairer for everyone. Of course it will take time to get there, but as long as we keep learning from our mistakes – and strike out the options that are obviously not going to work – there’s a lot that can be accomplished here. Hopefully this progress will move along faster though, because there is definitely a strong need for it at this point, and many insurance customers have said so themselves.