Samrtcar

Smartcar launches auto insurance solution to address $10 billion in premium leakage

March 11, 2020; Smartcar launched its car API for auto insurance providers. The API allows insurers to retrieve telemetry from most new vehicles across the United States. Insurance providers are able to address $10 billion in premium leakage by seamlessly verifying their customers’ mileage, garaging location, and VIN.

The concern about premium leakage

Premium leakage is omitted or misstated information that leads to inaccurate insurance policy pricing. In the United States, personal auto insurers lose $29 billion due to premium leakage every year. Underestimated mileage, misrepresented garaging locations, and incorrectly reported VINs account for over a third of these losses, amounting to $10.4 billion.

Underestimated mileage, misrepresented garaging locations, and incorrectly reported VINs account for over a third of all premium leakage losses.

Until now, insurance providers had no efficient way to combat premium leakage. Existing telematics solutions are often expensive, unreliable, and inaccurate, making it difficult for customers to share their vehicle information with insurers.

The car API for auto insurers

Using the Smartcar API, insurance providers can now instantly, accurately, and cost-effectively retrieve telemetry from their customers’ vehicles. Our technology takes advantage of the cellular modem that is already built into most new cars (2015 and later). Smartcar is compatible with 15 vehicle brands in the United States today and continues to expand.

Using the Smartcar API, insurance providers can now instantly, accurately, and cost-effectively retrieve telemetry from their customers’ vehicles.

How it works

Insurers can embed Smartcar Connect into their web portal or mobile app and collect user consent with just a few clicks. As Smartcar Connect provides transparency around exactly which information will be shared, insurers are able to build and maintain the trust of their customers.

Insurers can embed Smartcar Connect into their web portal or mobile app and collect user consent with just a few clicks.

After obtaining permission, Smartcar webhooks automatically send telemetry from the customer’s vehicle to the insurer’s organization. By verifying their customers’ mileage, garaging location, and VIN, insurers are able to address $10.4 billion in annual losses. They also increase customer retention through a simplified user experience and no more manual self-reporting.

The car API for auto insurers is available to all insurance providers in the United States starting today. We will announce some of our current customers soon.

To request a product demo or to learn more about our features and pricing, please don’t hesitate to reach out to the Smartcar team.

About Smartcar

Smartcar is the first and only car API for mobility applications. Our platform allows web and mobile apps to locate, unlock, and read the odometer from vehicles across brands. That said, our mission is simple. We’re making it easy to integrate with cars, so that your developers can focus on what’s important: building the future of mobility.

This post first appeared on Smartcar Blog and the author of this post is Charlotte Kosche

Daniela is America News Hour journalist and an expert in Finance, agricultural investments, economics, financial markets, new media, international relations & politics. Daniela has been a writer and editor for the past 11 years. She started out as a freelance content writer. Today, her articles have been picked up by major and local news sources and websites such as the CNET, Engadget, BuzzFeed and many more.

Leave a Reply