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5 Car Insurance Trends for 2018

5 Car Insurance Trends for 2018

According to Ted Gramer, CEO of TrueMotion, a mobile telematics firm in Boston, the most seismic shift in car insurance since it began over 100 years and it’s occurring now. Gramer wrote an article on the 5 car insurance trends he sees either beginning or unfolding this year. The article was published by Insurance Journal and provides some interesting insight into changes many consumers will find interesting, refreshing, and possibly long overdue. I think his observations are worth sharing here. Here’s how he sees 2018 unfolding: The customer will win. Low engagement, poor satisfaction and complicated processes will not survive in the $200 billion U.S. auto insurance market. Consumers have come to expect delightful experiences like they have with Amazon, Google and Apple, and they benchmark all company experiences against them. Auto insurance is no exception. Either incumbents will figure it out or new entrants will. In 2018, we’ll see the battle heat up with a focus on the customer experience. Expect UBI 2.0. The results are in: Driving data is highly predictive, mobile telematics has reduced the barriers to entry, consumers are signing up, and the carriers that started early are winning. Expect carriers to leverage driving data in new and innovative ways that go broader than just price targeting high-value segments. This will include levels of personalization not possible before, using mobile channels to drive customer engagement and loyalty. Carriers that have fallen behind will scramble to catch up. A massive opportunity in claims will fully emerge. After decades of claims functioning as the old school, back office part of the business, carriers are seeing the potential for game-changing impact on the customer experience, expenses and loss costs. In five years, claims will look nothing like it does today. The mosaic will be filled in beginning in 2018. The hype around connected cars and autonomous vehicles will continue. The key word being hype. The ugly math is that it will still be at least 15 years until connected cars penetrate half the U.S. vehicle fleet. Level 5 autonomy will take even longer. Unfortunately, the auto insurance deck will likely be reshuffled before then. To prepare for the transition, carriers will look to smartphone data to help – it delivers over 70 percent of connected car data, plus distracted driving data. Smartphones also provide new engagement opportunities. And, carriers don’t have to wait – more than 85 percent of drivers own one today. Outrage with distraction will reach a peak. After more than 3,400 thousand lives lost in 2015 alone and countless accidents as a result of smartphone use in cars, consumers, regulators and insurers will step up their game. Laws have generated...

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Insurance for Personal Property in Storage

Insurance for Personal Property in Storage

What kind of insurance policy is needed to protect personal property or contents while it’s in storage? This was the question a friend of mine texted me the other day. She put her home on the market and received an excellent offer within a few days, however her new home won’t be finished for another couple of months. In this case, my friend will need to store her personal property in a storage facility. Most home insurance policies provide for coverage of personal property off premises, usually 10% of the personal property coverage amount. However, since she will cancel her current policy on her existing home and won’t have a replacement policy on her new home until it’s finished, this is not an option for her. She does have two other options, get the insurance offered by the storage facility or find a policy that covers her property while in storage. Storage Facility Insurance: Many storage facilities offer an insurance policy on items an individual may store there. It’s not a great policy. Like a moving policy, the amount of coverage is usually an amount per pound such as $0.60 to $0.80. That’s better than nothing, but is inadequate for heavy items such as a bed, sofa, piano, etc. Quite frankly, if there was a loss such as a fire or water leak, this type of policy will not be able to pay to replace a heavy item. Storage Policy: One of my brokers does write a replacement cost policy for whatever is stored. We simply provide the amount of coverage needed and the length of time a person’s personal property will be stored. The cost is reasonable too. In this case, $300 to $400 for $80,000 to $120,000 in personal property for a 90-days. While this option is more expensive than the cost per pound coverage offered by the storage facility, my friend’s personal property will be protected for its full value. In addition, the storage policy is available for storage facilities where you rent a room or locker and store the items yourself, put them in a storage pod, or the facility comes to your home, picks it up, and stores it for you. This kind of policy is ideal for someone relocating to the area, or is building a new home that won’t be ready when they sell their house. What do you think? Share your comments, questions, or experiences with me on my Facebook, Google +, or LinkedIn pages. I’d love to hear from you! Thanks! Ed Wise Share...

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