Telematics innovation comes as claims volumes increase in the insurance industry.
SAN ANTONIO, August 17, 2022 /PRNewswire/ — Today, USAA announced that it was one of the first auto insurance companies to implement collision detection technology, an innovation that simplifies and speeds the claims process. This technology comes at a critical time as auto accidents have surpassed pre-pandemic levels, exacerbating supply chain issues and delays felt by consumers across the country.
Collision detection technology, integrated into USAA’s SafePilot® app, has generated more than 36,000 collision notifications since its November 2021 launch. The technology uses smart phone sensors in the app to detect a possible collision and prompts the member to check if an accident has occurred. Once verified, the app immediately offers helpful information, including accident scene safety tips, the ability to file a claim through a streamlined process, or the ability to dial 911 directly from the app.
“At the end of the day, it comes down to making sure our members are safe and helping them get back on their feet faster,” said Luke Harris, USAA Vice President of Innovation. “We are constantly looking for innovative ways to make life easier for our members, something USAA has been focused on for over 100 years. By using telematics and collision detection technology, we can provide a more seamless member experience and faster claim resolution. .”
Collision claims reach pre-pandemic levels
As telematics innovations improve the claims process, the insurance industry continues to face an increase in the volume, severity and cost of motor vehicle accidents. The USAA processed 500,000 more claims in 2021 than in 2020, a trend widely felt as pandemic restrictions were lifted and more cars returned to the roads.
The severity of accidents is also increasing. The National Highway Traffic Safety Administration (NHTSA) recently announced a record number of road deaths in 16 years, raising fears of growing danger on the roads. With an increase in serious accidents, the cost of repairs has also increased significantly. In 2021, USAA saw collision repair costs increase by 38% over 2020 and is currently on track to see an additional 30% increase in 2022. Additionally, as inflation has impacted on the price of goods and services, insurers are seeing an increase in repair costs. vehicles resulting from supply chain issues and parts and labor shortages.
Among these changes, telematics-based insurance plans have grown in popularity with USAA members as they look for ways to save money on their insurance premiums:
- SafePilot®, the USAA’s Behavior-Based Insurance (BBI) plan, rewards safe driving behavior with premium discounts. Members who register are eligible for initial discounts of up to 10% for enrollment and ongoing discounts of up to 30% for safe driving behaviors. Driver enrollment is more than 200% higher than in 2021 for SafePilot®, which is now available in 43+ states washington d.c.with plans to expand to nearly every state in 2023.
- USAA also now offers pay as you drive, a usage-based insurance (UBI) option that determines rates based on how much and how safe you drive. USAA acquired the product from Noblr, Inc. in 2021, and it is currently available in 10 states, with plans to expand to the majority of states in 2023. This product is becoming popular for members now working from home or using other forms of transportation (cycling, public transit) as the primary mode of travel.
To learn more about these offers, visit USAA.com/drive.
Founded in 1922 by a group of military officers, USAA is a leading provider of insurance, banking, investment and retirement solutions to more than 13 million members of the United States military, veterans who served honorably and their families. Based at San Antonio, USAA has offices in eight US cities and three overseas locations and employs more than 38,000 people worldwide. Each year, the company contributes to national and local nonprofit organizations to support military families and the communities where employees live and work. For more USAA news, follow us on Facebook or Twitter (@USAA), or visit usaa.com.
Contact: USAA Media Relations