Sensor-Based Auto Insurance Quotes for Accurate Risk Assessment
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Solution Overview
Problem
Determining accurate auto insurance risk is difficult due to unreliable customer-reported factors, leading to inefficient and time-consuming traditional insurance purchasing methods that may not meet customer needs.
Innovation Solution
A system that tracks vehicle usage data through sensors and mobile devices to generate personalized and dynamic insurance policy quotes, allowing real-time data collection and immediate policy creation based on actual usage patterns.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If traditional customer-reported factors are used to determine insurance risk, then the insurance purchasing process is simple, but the risk assessment accuracy deteriorates
Solution Approach 1:
The patent replaces the manual customer-reporting system with an automated sensor-based tracking system. Sensors in the vehicle automatically collect and transmit usage data (mileage, driving behavior, location) to the insurance company, eliminating the need for customers to manually report information while significantly improving the accuracy and reliability of risk assessment data.
Solution Approach 2:
The patent introduces a mobile computing device and sensor system as an intermediary between the customer and the insurance company. This intermediary automatically collects, processes, and transmits usage data, serving as a neutral mediator that provides accurate information to the insurance company without requiring direct customer reporting or intervention in the claims process.
2Productivity
If traditional insurance policy creation methods are used, then the process is straightforward, but the time required to complete purchasing increases
Solution Approach 1:
The patent implements preliminary action by having sensors continuously collect and pre-process usage data before insurance policy creation is needed. The mobile computing device maintains an up-to-date record of vehicle usage patterns, so when a customer requests insurance coverage, the data is already prepared and can be immediately used to generate quotes and policies, eliminating lengthy data collection periods.
Solution Approach 2:
The patent establishes a feedback loop where usage data is continuously collected, transmitted to the insurance company, and used to dynamically adjust policy quotes and terms. This real-time feedback mechanism allows the system to rapidly respond to customer needs and provide immediate policy creation based on current usage patterns rather than relying on outdated information.
Data Source
AI summary
Computer-implemented methods, mobile computing devices, and tangible, non-transitory computer-readable media storing instructions for creating one or more new insurance policy quotes for a customer associated with a customer vehicle may be described. The computer-implemented methods may include tracking, in conjunction with one or more sensors, a particular type of usage data of the customer vehicle based on a coverage type, of a plurality of coverage types, for the customer vehicle; transmitting, to a computing device, the particular type of usage data; receiving, from the computing device, one or more insurance policy quotes corresponding to the coverage type for the customer vehicle; and displaying the one or more insurance policy quotes in a user interface of the mobile computing device.