In transport industry vehicles are primary valuable asset for their companies, which is why fleet managers have to ensure their fleets are insured and secured on time with advanced ‘telematics insurance’ or ‘usage based insurance’ (UBI) or also known as ‘pay as you go’ insurance for any unpreventable safety precautions. But when a vehicle occurred in an accident, getting an insurer to pay up your claims is never an easy task. It is never enough to simply walk into the claims department and ask for your money.
Telematics Accident Reconstruction is a very useful tool for better understanding about accident event. With telematics data insurance company can streamline the investigation process by determining who is responsible and liable for the crash event. These data helps in defending legal proceeding, optimize the claim process and vehicle repair process.
So let’s take a look at how telematics accident reconstruction tool can benefit both insurance company and insured.
List of Benefits for Insurance Company
- More Accurate Data & Reports: “Telematics Insurance” or “Black box” records vehicle data like driving behaviour (hash acceleration, braking & fast cornering), crash event, fuel usage, seat belt usage, and vehicle inspection report, etc., also insurance company will get notify by sending instant alert whenever unusual activity happens regarding vehicle safety. These data are very helpful for insurance company while determining the vehicle premium. Telematics accident reconstruction gives granularity details of before, during & after vehicle crash event, which helps to determine how it happen, why it happen, and who is responsible for such incident. Also helps insurer to find fraud claims.
- Reduce Fraud Claim: Without telematics data crash for cash or insurance fraud will be more difficult to cause and insurer will have to pay benefits if the situation demands it. But with telematics accident reconstruction when customer file a claim, insurer will have ability to find these fraud claim and can verify actual data of impact value the exact amount of claim for impact. The annual cost of motor insurance ‘crash for cash’ fraud in the UK is estimated to be a staggering £392m, with around 380 fraudulent claims submitted to insurer daily. This adds about £50 to all drivers’ premiums, and a recent consumer survey revealed that 84% of motorists are concerned about premium being raised in order to cover the cost of fraud.
- Helps for Investigation: Usually an investigator will interview drivers along with witnesses, collects whatever physical evidence exists at the scene and summarize their statements in the report. Beyond telematics data, the quality and accuracy of the crash investigation report will vary depending on the effort of the investigating officer. Telematics accident reconstruction with auto calibrate accelerometer have the ability to reconstruct the accident sequence in terms of the speed and traveling direction of the car, as well as hard braking and impact value after a minute of accident happen. Telematics device will send crash data of before, during & after the crash to server which can help accident investigators to get a clearer picture of how the accident happened and what caused it.
- Good & Long Term Relationship with Insured: Insurance companies are tuning with telematics technology to create good and long-term relationship with insured even during a crash event. Some Insurance companies are incorporating driving data into programs that offer gamification benefits for safe driving, such as rewards cards and discounts on goods and services. Providing personalized, revenue-generating, value-added services to insurance plans to serve customer interests more effectively. Even on crucial situation like when an accident occur Accident Reconstruction tool will send instant crash detection alert to insurer which helps to locate insured and send necessary assistance to the crash site in case of emergency. Accident Reconstruction tool helps Insurance companies to maximizing customer experience and strengthening long-term meaningful relationships through closer communication.
- Good Marketing Potential in Insurance Industry: By introducing strategic telematics insurance helps insurers to improve their position in the insurance industry by providing lower premium cost and adding low risky drivers to the customer base. Enhancing the customer perception of the company as being more technologically advanced will attracts new customers. Those insurance providers who get involved with usage-based insurance programs early will have a distinct advantage over those companies who wait and risk losing valuable customers to their more innovative competitors.
- More Profitable: Telematics device with accident reconstruction tool benefits both insured and insurer has it provides granularity details of driving style to adopt safer and good driving practices in other way, lower the number of accidents and number of claims the insurance company has to pay out. Also it helps to catch fraudulent claimants, again the savings from fewer fraudulent claims and more accurate claims investigation would have an impact on more profit.
List of Benefits for Insured
- FNOL: Many insurers are already implemented telematics devices with accident reconstruction feature which helps with FNOL prefill. When an accident happens device will send a data pack which contains date and time, location of crash, speed, braking distance, and direction of vehicle was traveling, etc., to server with a crash detection alert to insurer. Then the data can be used as a FNOL with accurate and timely information on claims. Essentially, this can help reduce the “gray area” often left to interpretation during the claims process.
- Reduce Vehicle Premium Cost: Many Insurers offers discounts to customers who install a telematics device in their vehicle. This device will records data such as: driving style (number of harsh acceleration, braking & corners), traveled time, miles traveled, and crash detection alerts. This collected information will be reported to the insurer with driver scorecard. Over time, the insurer will be able to gauge an image of how good a driver your and helps to calculate your next premium, so better the driving lower the premium or worst the driving higher the premium.
- Optimize Claim & Repair Process: Telematics accident reconstruction helps as a tool for data analysis to have a better understand about crash event. In many cases, the claim investigation procedure may take a few weeks or several months depending on the severity of the crash and the complexity of the issues in the claims. Furthermore, telematics insurance or telematics accident reconstruction tool can make the process of claiming benefits more transparent and streamline as all the information will be available to both parties after the minute of accident happen. The telematics device in the vehicle records crash data before, during and after the crash event. This will reduces the time consumption for collecting the information of crash event; as a consequence insurer can determine compensability and responsibility more quickly.
- No-Fault Insurance: no fault insurance, also known as personal injury protection insurance (PIP), which will cover insured and his passenger’s medicals bills and loss of wages in the event of a crash, depending on who is liable for the such event. Telematics Accident Reconstruction data can streamline this process of identifying who is liable as crash data available after a minute of crash event and optimize claim process much faster.
- Improve Driving Behaviour: Telematics devices offered by insurers will have a driver monitoring system for monitor your driving activity which can be helpful in improving good driving behaviour. A telematics technology that records how frequently you accelerate, hard brake, turn sharply, or any other signs of bad driving habit has the possibilities to encourage drivers to improve their driving habit. As insurers provide reward in form of premium discounts for having good habit records insured will have greater control over their premiums. If they want to lower their vehicle premiums, they can earn discounts by improving their driving habit.
- Reduce Risk Management: All drivers who register a car in Texas must have liability insurance. Currently, under Texas law, drivers must have “30/60/25” liability insurance.
In other words, they must have the following minimum amounts of coverage:
- $30,000 for injury to one person
- $60,000 for injury to two or more persons
- $25,000 for property damage per accident
This insurance covers the injuries/ no fault insurance and property damage that a driver causes others to suffer in an accident, including medical bills, car repair and replacement and other accident-related expenses.
Telematics systems can be helpful, and even lifesaving, for drivers. This technology can bring emergency assistance to the site of a crash, help first responders decide where to send accident victims for treatment, assist police in tracking stolen vehicles, and direct motorists to the nearest gas station. When an insured met with a fraudulent accident, Telematics Accident Reconstruction data can help defending claims & potentially minimizing legal costs by determine who was responsible for crash event as its recording can be yours in legal proceedings. The law also prohibits download of that data without the owner’s permission or a court order.