In an industry based on accurately assessing and rating risk to maximize profitability, it’s essential that insurance carriers are able to correctly identify each vehicle they insure. This can be a challenging task to accomplish without leveraging a comprehensive vehicle data solution, especially as vehicles continue to advance.
In this article, we’ve given some high-level examples of how a vehicle data and VIN decoding provider can help improve each part of the auto insurance process, from online quoting and underwriting, to handling claims.
The Quoting Process
Online auto insurance quoting not only offers a better experience for customers but also greatly benefits your business. Whether you are providing real time quotes through a third party comparison tool, or offering quotes on your website, potential customers are able to efficiently shop for the best fitting insurance policy. This will contribute to a steady flow of leads and ultimately a larger pool of policies for your company, as well as for agencies selling your insurance.
Leveraging a comprehensive vehicle data and VIN decoding solution will help increase accuracy of the quotes you provide. Though identifying vehicles by VIN is the best way to provide the most accurate quote with little fluctuation from the approved rate, many consumers won’t have their VIN at the ready. The vehicle data provider you choose should have the ability to generate a partial VIN based on the vehicle’s year, make, model, and trim.
Underwriting is the cornerstone of your business. In order to be profitable, it’s important that your underwriters are able to accurately assess the risk of each applicant. Though the driver’s asset (their vehicle) is not the only risk that needs to be weighed, it’s a large part of their overall risk rating. Therefore, the ability to accurately identify the vehicle being insured is crucial.
Vehicles are becoming more complex with advanced safety features that can help prevent accidents. Determining when these safety features are present is challenging, especially without utilizing a comprehensive vehicle data solution.
Submitting a claim can be stressful for drivers. Your company has probably allocated resources to help make the handling of claims simple and painless for its policyholders, including the ability to complete much of the process online or right from your insurance company’s mobile app. However, is your internal claims process just as good?
There are several ways in which leveraging a VIN decoding solution will help improve the handling of insurance claims internally. For example, without an accurate representation of the vehicles you’ve insured, you could potentially be fixing vehicles that should have been deemed a total loss, or paying out larger settlements due to inaccurate identification of a claimant’s vehicle or overestimated repair quotes from auto body shops outside of your network.
Incorporating a vehicle data and VIN decoding solution into your auto insurance processes is a great way to ensure that each policyholders’ and claimants’ vehicles are accurately identified. Understanding exactly which safety features are installed on a given vehicle, and how they may prevent accidents or result in costly repairs, is invaluable to your business. Properly identifying the value of each vehicle will save your insurance company thousands of dollars each year.
If you aren’t already leveraging a VIN decoding solution, or your vehicle data provider is unable to provide the highly accurate and comprehensive data your business requires, we’d be happy to help!