Insurers scramble to take the lead in this rapidly growing market.
Sprint’s recent announcement that it was stepping into the usage based insurance sector of the auto coverage industry was a clear indicator of the sudden and rapid growth of this market segment.
The battle has already started among UBI programs even before many consumers know they exist.
Many drivers have yet to know that this type of program exists. It is for just this reason that insurers are working so hard in the race to become the top usage based insurance program. They want to be the first one in front of drivers who are looking to save money on their premiums, so that they will become the automatic choice.
This usage based insurance race is adding even more complexity to the auto coverage world.
The announcement regarding Sprint’s Integrated Insurance Solutions (IIS) was only the latest among many. In that particular instance, it was regarding the wireless service, software, and actual devices required to run a usage based insurance program. It utilizes a cloud based system for the collection of the driving behavior data that will be used to calculate the policyholder’s premiums.
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It is believed that IIS will provide a jump start to all usage based programs through recognition alone.
Esurance has already partnered with Sprint in order to take its own first steps into the usage based insurance world. It will have to scramble to keep up with some of the programs that are already much more established, but as the entire sector is just getting started, it may not have fallen behind too far, just yet.
Progressive, on the other hand, has used its Snapshot program and aggressive advertising campaigns to bring usage based insurance to its own policyholders, as well as to draw the customers of competing insurers. Its program is now available in 80 percent of the United States and is being offered to customers and non customers to see how much they will save should they switch to the program.
State Farm and Ford are working together to equip cars with the SYNC connectivity systems that will allow for fast and easy user based insurance program enrollment with the Drive Safe & Save Program.