2 Ways You Can Use AI To Save Money on Car Insurance

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Artificial intelligence (AI) tools are making it easier than ever to cut costs on car insurance. From comparing rates to spotting discounts, these tools can help uncover savings that are easy to miss.

Looking to save money on car insurance? Here are some smart ways that drivers save with AI.

Insurance Comparison Websites

One of the ways to save on car insurance is to individually review insurance company quotes online or use an AI insurance quote comparison website to do all the heavy lifting.

According to Insurify, some websites utilize AI to compare coverage and prices. Many can can collect quotes from multiple providers so customers can view side by side premiums, coverage, deductibles, terms, exclusions and other details to be able to make an informed decision in a short amount of time. For example, Jerry (an AI insurance shopping assistant) can search more than 50 insurers and also has a negotiation bot that checks for insurer discounts, according to Reclaim Saturday.

When comparing quotes, it is possible to have a savings of up to 50% on annual costs, according to Insurify.

Smartphone Apps and Telematics Devices

Depending on the insurer, safe drivers can qualify for better rates that reflect how they actually drive. AI can help save on car insurance through smartphone apps and telematics devices that collect data about driving behavior (speed, braking and driving distance) and send it to the insurer. The collected data is then checked to see if the driver is being safe and cautious, which would allow for a premium discount.

Root Insurance is one such AI-powered car insurance that checks driving behavior and rewards safe drivers with a possible savings of 20% to 40% when compared with traditional insurers, per Reclaim Saturday.

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