auto insurance

Auto Insurance & AI – The Future is Nigh


We like to think of artificial intelligence as being the future of our civilization. However, it’s already the present. There are a lot of AI-focused technological advancements in many different industries. So, it is expected at some point in the next 50 years or so, that AI will completely change the auto industry. Huge advancements have been already made in terms of self-driving cars over the last few years. 

Today, there are several levels of autonomy in cars, ranging from 0 (meaning no automation) to 5 (fully autonomous driving functions). At this point, many car manufacturers apply level 2 (semi-automated systems). For instance, Mercedes Benz E-class and S-class, Tesla Models X, Y, S, Nissan Rogue, BMW X5, Audi A6, and A8, etc. The advantages of them are huge as they are significantly safer than human-operated cars. Also, it’s a much easier and faster way to travel. Once we have roads adapted to suit them, it’s hard to imagine that self-driving cars won’t become the norm.

That in turn will probably initiate some changes in auto insurance. Let’s have a look at what impact AI is going to have on auto insurance!


At the moment, auto insurance prices are somewhat of a controversial topic. Often, it doesn’t really feel like the driver is getting a fair deal. There are a number of factors which go into the calculation. The rates can significantly increase due to the driver’s age or various events from his past. Besides, insurance companies can deny discounts that should be applied for no clear reason.

However, once all cars are self-driving, most of that stuff is going to have to be stricken from the decision. Nothing you do can have a substantial impact in terms of causing a crash. So, your age and driving experience can’t really affect the pricing. In addition, there are some new technologies out there that are using AI to make advancements in terms of tracking traffic stats, map services, and speed profiles. Access to this kind of information will prevent insurance companies from taking advantage of loopholes or customers who lack knowledge. 

So overall, the impact of AI on the price of insurance should mainly be a positive one. 

Inspection Methods

The rise of the virtual inspection was escalated somewhat by the 2020-21 pandemic. With social distancing being a necessity, the inspections that are required to determine a policy rate had to change. Everything was done with a virtual and photo-based system. Virtual claims hosting is now estimated to account for about 60% of checks overall

Basically, this has led to an overall increase in efficiency and consistency. This is just the first step in the automation process. Most likely, this will become an aspect of the auto insurance industry that is entirely done by AI over the next few years. That should automatically speed up the process of getting a claim settled for yourself by quite a bit. Moreover, it should also eliminate the risk of the provider taking liberties and deliberately misrepresenting your vehicle’s condition for their own gain.

Big Data

If you’re unfamiliar with this term, big data refers to datasets that are too large for traditional storage software. It is only in the last couple of decades that we have the technology necessary to store the amount of data generated by certain large-scale industries. AI has also played a big part in that. In the case of things like manufacturing, healthcare, and insurance, there is a ton of data because there are so many people and so many assets involved. It would be impossible even for a team of people to go through it all. So, a lot of the time large sections of data are not even considered when trying to gauge the public perception of a product. 

But with an advanced AI, we don’t need a team of people to do that. We can have an automated system sift through the thousands and thousands of files, analyze them for key information, and put forth the findings. This in turn allows for a data ecosystem where information is easily available to all who need it. Therefore, applying for auto insurance, you can have every single piece of data that you need at your fingertips. Neither you nor your potential provider needs to do any work to find it. This will be something else that will dramatically speed up the process of getting insured. Besides, it can help to prevent you from any kind of scams. Meanwhile, you can check VIN number with ClearVin. A VIN number decoder can help you make an informed decision when buying a used car, as you can verify that the seller’s claims match up with the information provided by the VIN. Moreover, you can also find out if a vehicle has any liens or outstanding fines, which can help you avoid potential legal troubles down the road with our free license plate lookup. If you are involved in business, performing a car dealer lookup is a great option for you.

Sum Up

So for the most part, it would appear that the impact AI is going to have on auto insurance will be a positive one for drivers. It still might be a decade or more before we get to that stage. Although, AI is already changing many things faster than we could have anticipated, so who knows how quickly these changes could take effect too.

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