Personalized Auto Insurance Appeals To Consumers Looking For Deals And Customization

September 23, 2020 Sarah Cavill

Consumers are savvier than ever, with more and more native tech users entering the workforce and controlling the narrative about what they expect from brands. Many modern consumer expectations can be met through personalized digital technologies that save money and time, and what is expected and can be delivered for car insurance is no exception. An “upcoming payment” reminder scratches the surface of the tailored, customized experiences many consumers want from their car insurance brands. From telematics to agile pricing, auto insurance brands are providing today’s version of customized experiences for drivers. 

Telematics Offers Personalized Auto Insurance That May Appeal To Consumers Who Are Driving Less

Shutterstock_1137159275 KONSKIE, POLAND - JULY 17, 2018: Metromile fintech company website displayed on a modern smartphone

Metromile, a pay-per-mile car insurance company in the U.S. that uses telematics to track consumers’ mileage and sync vehicle information to the Metromile app, has entered into a strategic partnership with Ford. The Metromile/Ford partnership leverages the growing popularity of car tech and telematics to offer Ford customers with connected car models the opportunity to opt in to Metromile auto insurance coverage. “Connected vehicles have the potential to deliver great benefits to Ford customers, including the ability to help lower their insurance premiums,” said Alex Purdy, Director of Business Operations, Enterprise Connectivity, Ford Motor Company. “Metromile’s approach to insurance is an excellent example of how connected vehicles can help people save money by simply paying for only what they use.” 

The customized plans that are inherent with telematics are designed to save drivers money and get away from flat rate pricing. And, while most telematics include mileage, many also take into account usage-based factors like speeding, time of day, braking and other safety measures. Telematics and pay-per-mile plans are particularly well-suited for drivers during the pandemic, who may find themselves working from home and using their cars less. Brands that can meet shifting consumer behaviors are better positioned to differentiate their services. 

Up-To-The-Minute Pricing Options Are Increasingly Popular With Personalized Auto Insurance

Several startup auto insurance brands are leveraging multiple technologies to offer their customers agile pricing. With the use of smartphones to track driving behaviors, auto insurance carriers are able to offer low rates to safe drivers, or lower rates as consumers prove their safe driving skills. Auto insurance providers are also monitoring price drops in premiums and pinging their customers to make them aware of opportunities to lower their rates. Fast resolution of claims, using artificial intelligence (AI) and app-enabled seamless filing, is another area where today’s car insurance companies are meeting increased consumer demand for low-fuss, high-personalization, products and services.

Differentiation In A Top-Heavy Industry May Be The Key To Successfully Marketing Personalized Auto Insurance

Shutterstock_1158955357 Businessman's Hand Protecting Blue Toy Car On The Reflective Desk

As with so many industries, offering differentiation and distinguishing the available customizations may be the ticket for car insurance brands to stand out in a crowded marketplace. Writing for Insurance Thought Leadership, Katherine Wellman, VP of Product at Cambridge Mobile Telematics, said “In the auto insurance industry, where the top three providers makeup 41% of the market, and the top 10 take 72%, there needs to be a clear differentiator for companies to win more business, retain top customers and establish themselves as leaders.” Data-based personalization and customization within auto insurance is one of the ways auto insurance companies are differentiating themselves in 2020.

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About the Author

Sarah Cavill

With more than 20 years of writing, editing and reporting experience, Sarah Cavill brings to Digital Media Solutions (DMS) a fine-tuned and diverse set of skills. Her work has been featured in notable publications including The Daily Muse, CBS Local, Techlicious and Glamour magazine. Sarah has a passion for current events and the deep-dive research that goes into the content development and brand identity of DMS Insights. In her role as Associate Content Manager, Sarah contributes to the pitching, researching and writing of multiple stories published each week surrounding digital and performance marketing innovations in pop culture, news, social media, branding and advertising.

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