Can Smart Tech Save On Your Insurance Premiums?

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Discounted Insurance Premiums For Installing Smart Technology?

In the current global setting, technology has taken over close to every aspect of our lives.  Yet the technological revolution is still in its infancy.
We, now more than ever, are connected to our smart devices, but can this connectedness help save us money?

Insurance companies are starting to understand that smart tech deployed in homes, cars and businesses can reduce the odds of a problem and are beginning to reward policyholders with discounted premiums.can-smart-tech-reduce-insurance-premiums

Insurance service providers are starting to take notice of smart technology in our cars and homes, and they are adding competitive discounts to those who prove that they are being proactive in reducing the risks to their investments. Let us, for example, consider homeowners and car insurance.

Smart Home Technology

The internet of things and smart home technology allows people to protect and monitor their houses remotely since their homes are usually connected to such devices as cell-phones, desktop computers, and tablets. It enables homeowners to interact with their houses seamlessly and remotely for safety, comfort, and convenient.

Smart home technology might include:

  • Lighting control
  • Door and window sensors
  • Water leak detection
  • Heating and Thermostat
  • Real-time data is the most significant aspect of our home technology, especially because some emergencies, such as water leaks, require prompt action. For instance, if your bathroom taps spray out water while you are at work, the water leak sensor will pick up the anomaly and notify you right away.

Such timely data will reduce the potential damage and ensure that you avoid having to pay a lot of money restoring the damaged area of your house. The difference between eight hours and half an hour, in as far as water damage is concerned, can be huge.

Various examples of smart technology in homes include:

Door and window sensors: This technology works towards ensuring that all your windows and doors are locked. It can be easy to forget whether or not you left one of your windows open, which can be a target for buglers looking to steal from your house. This technology can also inform you immediately your door or window remotely opened through your phone.

How Homeowners Can Receive Insurance Premium Discounts?

Even though some insurance providers have not fully acknowledged that smart home technologies are increasingly becoming a part of home security, change is going to become evident quite soon as more people will begin to integrate such installations into their houses.
Homeowners are likely to save money on their insurance premiums because the smart home technologies will significantly help in preventing major homed disasters, preventing burglaries, minimising the risk of death, and keep other properties housed in the home safe. Moreover, such installations can save money spent on energy bills.

If a disastrous occurrence happens in your house, such as water leaks that you are not able to fix within a short period, the water detection sensors will show that your home was compromised by your bathroom taps spilling water. Such data will, in turn, expedite the insurance claims thus allowing you to get the insurance claim settled quicker and sort out the damage. There are numerous cases of insurance fraud going around, and having smart home technology will assist you to speed up the process followed while settling home insurance claims.

All these reasons positively affect home insurance premium rates. Smart technology is quite cheap to install, and if you can save some money on your insurance costs, then why not? All you have to do is to inform your insurance company of the actions and precautions taken by installing smart technology in your home and get to negotiate with them to lower the applicable premium costs.

How Smart Technology can Reduce Car Insurance Costs

Vehicles fitted with the Advanced Driver Assistance System are equipped with features such as Active Park Distance, lane departure warning, and sensors that can stop or slow cars before colliding. This system can reduce motor vehicle accidents by up to 25 per cent and lessen insurance premiums considerably.

Sometimes your eyes might fail you, especially if you are sleepy or tired. Failing to see clearly ahead accounts for a good number of road accidents, and according to UK figures, more than 40 per cent of road collisions are as a result of the driver failing to look or see what lies ahead. While smart technology might not be able to fix lapses, it can reduce the chances of a collision.

More and more cars are being fitted with Autonomous Emergency Braking Systems that will inform the driver of potential collisions then apply the emergency brakes if the driver does not act promptly. This technology is one of a range of safety measures and driving aids that are collectively referred to as Advanced Driving Assistance Systems.

How Car Owners Can Receive Insurance Premium Discounts?

Mass adoption of intelligent driving technologies is good news for both car insurance premiums and road safety. Fewer accidents will translate into fewer claims, which will push down the cost of car insurance premiums to consumers.

Please note that insurers are working more closely with auto manufacturers to ensure that ADAS technologies achieve the required level of security; the insurers can, therefore, price auto insurance premiums more accurately. Additionally, since more vehicles are getting connected, both car manufacturers and insurers are collecting big data; this will help the insurers to develop policies customised to such technological improvements.

As more and more driving tasks are shared between the driver and intelligent systems, insurers cannot price the risk in accordance with the driver of the car, as it has been done traditionally. Insurers will, consequently, start considering what vehicle the client is driving.

Smart technology is definitely changing how insurance operates. While currently smart technology is often used to get to the bottom of things once they go wrong, technology could help avert problems altogether in the future. With this in mind, you can be sure that smart tech will likely reduce insurance premiums in the future.