There have been many changes in the insurance sector over the last couple of decades, and one of the segments that has experienced tremendous reforms is auto insurance. Auto insurance is poised to undergo more extreme changes soon, thanks to the fast-evolving environment. As a car owner in Rochester Hills, MI, here are the auto insurance reforms that you should expect in the future.
A Reduction in Premiums and Cost of Insurance
Autonomous vehicles are already catching on momentum, and they will soon be the norm thanks to improved autonomous technology. Autonomous cars are perceived to be safer than standard vehicles because of the numerous driver-assist and safety technologies. At Guy Hurley McNeil, we believe that drivers will experience up to a 26% reduction in the premiums and the cost of their insurance due to this improved safety.
A Reduction in Claims Denials
Most auto insurance claims that insurers deny are turned down based on a lack of sufficient evidence supporting the car owner’s claim. However, moving into the feature, most vehicles will be fitted with multiple cameras that record what’s happening around the car at all times. The captured footage will be irrefutable evidence for car owners making claims on theft or accident compensation. This means they will likely get compensated, and there will be reduced claims denials.
An Increase in Damage Severity
Although autonomous vehicles will reduce the likelihood of accidents, the accidents will cause more severe damage to the cars. This is because, in the future, cars will have more sensors like radar mounted on their bumpers to enable autonomous driving. Damage to the front bumper resulting from an accident will also mean damage to the radar, resulting in more expensive repairs. Those with lean coverage will feel the pinch of the increased damage severity and the associated high repair cost the most because they have to pay for most repairs out of pocket.
Contact Guy Hurley McNeil to get the best auto insurance deal in Rochester Hills, MI.