Artificial intelligence (AI) could not only reduce road accidents but also lower vehicle insurance costs by significantly cutting accident-related compensation claims. It can also analyse driving behaviours, potentially influencing the final insurance premium.
This technology offers various benefits if implemented with full compliance with the EU’s General Data Protection Regulation (GDPR). It uses data on driving habits to generate predictive analytics, providing real-time critical insights.
Technology company Geotab already employs devices that collect vehicle data to create predictive analyses of driver behaviour, identifying risky habits such as rapid acceleration or abrupt braking. These predictive methods have reportedly reduced collisions by 25% in company fleets.
Additionally, advanced driver assistance systems (ADAS), using cameras, radar, and sensors, warn drivers of potential dangers. By analysing driving patterns, such as frequent lane departures or impending collision risks, these systems can make adjustments like automatic braking or steering to avoid accidents.
Insurance companies are leading efforts to implement AI technologies to reduce accidents and associated compensation payouts. This effort results in fewer accidents and lower premiums for drivers without risky behaviours.
AI can also consider weather patterns, road conditions, and traffic during peak hours to draw valuable conclusions about driving practices. One innovative concept is the use of “black boxes” in cars, which record vehicle movements and driver behaviour to provide a comprehensive view of conditions inside and outside the vehicle.
Sources: CNA
