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Why Consumers Will Fall in Love With Connected Cars

This weekend is Valentine’s Day and love is in the air. In the spirit, we thought we’d share these five reasons why we believe that, despite some initial questions, consumers will fall in love with connected cars this year. After all, at a growth rate 10 times as fast as the overall car market, with estimates that 75% of cars shipped globally will be built with connected capabilities by 2020, it will be hard to get away from this phenomenon. And why would you want to? This is one relationship that will last, no matter how hesitant you are to get it started.

  1. Safety and Security – One of the hallmarks to a great relationship, connected cars improve the safety and security of drivers in several ways. Through the ability to predict road conditions based on weather, traffic or other hazards, drivers can avoid unnecessary routes. Further, with advanced crash and claims information, insurers can now help drivers who have been in an accident by offering real time assistance as well as claims processing – so drivers can get back on the road, faster.
  2. Better Drivers – Working hard to improve is always a priority. With information on your driving behavior, it’s easy to be conscientious about bad habits and begin to improve. This can be especially useful for teen drivers who are just learning how to drive, making them safer drivers from the beginning. What a loving gift to Mom and Dad!
  3. Cost Savings – As you become a better driver, insurers with Usage Based Insurance and telematics programs will provide insurance premiums or discounts based on your particular driving record vs. the average of how “people like you” drive. This can save you money in the long run, as a connected car provides data (to you and the insurer) about your abilities.
  4. Car Health – Telematics data can help drivers to know about a problem before it’s a problem. Monitoring car health reduces operating and maintenance costs, maximizes car life and improves reliability and again, safety. Knowing the health of a car allows drivers to be proactive in keeping it in mint condition (less worries when driving long distances, in strange locations, in bad weather, etc.). Knowing your car health not only saves money but also provides peace of mind.
  5. Access for Anyone – You don’t have to buy a new car to be connected. With advancements in telematics, many “black box” devices are available to make any car a connected car. Plug and play ports, these devices allow drivers to do all of the above. While new cars will continue to be delivered from manufacturers as connected with all the newest features, older cars can reap the benefits as well.

All in all, the connected car is upon us. Not unlike technologies before it, some misunderstandings and fear accompany its adoption. Remember moving from phone to fax, fax to email, or even online shopping? Security and value were always questions during those early adoption days. Yet those technologies are now a part of our everyday lives – and we believe that connected cars will be, too.

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