Carpool and carpooling programs have changed modes of transportation and are now changing coverage.
Allstate CEO Tom Wilson explained that the auto insurance industry should expect substantial changes due to ridesharing companies.
These services have changed the way vehicles are used so that they are no longer defined by automotive products.
The interview was reported from CES 2019 by a Cheddar item. In it, the CEO of Allstate highlighted the change that ridesharing and ridesharing services have brought to personal transportation. However, traditional auto insurance products do not cover vehicles for this type of use. Therefore, the popularity of these services and the need for coverage for these types of vehicle use is redefining the way auto insurance is purchased.
At the annual event in Las Vegas, Nevada, Wilson said that just insuring a car like we currently do will soon be a thing of the past. The reason is that many consumers no longer buy their own vehicles exclusively for their own use.
The problem addressed by the CEO of Allstate was the fact that more and more people are driving cars they don’t own.
A growing number of Americans drive vehicles they do not own. “What’s going to happen in the future, I think it’s going to be split,” Wilson said. “Insurance currently follows the car. But you should have insurance for what you do as a driver.
Wilson’s description of a double insurance model does not necessarily imply that insurance costs will increase. In fact, Wilson explained that Allstate currently tracks 8 billion miles of data every month. The national insurance company is currently using this data to help drivers receive more accurate prices based on their actual safety behind the wheel. This eliminates much of the need to guess and estimate a driver’s unique risk.
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