Telematics’ Auto Insurance Benefits Touted

Man and woman arguing after fender benderMany car insurance companies and their policyholders could realize savings if the claims process is expedited, according to Dave Ferrick, senior vice president and general manager of Cross Country Automotive Services, a service provider for the auto and insurance industries as well as owner of ATX telematics.

At the Center for Automotive Research, Ferrick asserted that the cost of law enforcement’s response to accidents causes insurance company losses to grow and rates to increase. Savings could be realized if the existing notification systems in cars could notify insurers, with owner permission, to help get the claims process moving faster.

“From the insurance carriers’ perspective, the quicker they can process the claim, the quicker their policyholder gets the car back in the driveway,” says Ferrick. “Accelerating the process directly translates into higher customer satisfaction with the carrier, reduced costs for towing and repair, and less risk of the claim resulting in disputes and higher claim costs.”

Some auto providers already offer discounts to motorists who consent to having a telematics device in their car.

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

No comments yet.

Comment on this article