How Technology Can Help Your Dealership Get Better Commercial Insurance Rates

Embrace technology like telematics, data analytics, AI, and IoT to enhance dealership operations and secure better commercial insurance rates.

December 21, 2023

With technological advancements reshaping industries all over the world, the insurance sector is no exception. Technology is revolutionizing how policies are sold, administered, and even how risk is assessed especially for dealerships that need business protection. 

Forward-thinking dealers also look to technology to help them reduce their own risk as they look to save money on all forms of commercial coverage. 

There are a few areas where technology is impacting commercial dealership insurance

  1. Telematics - A combination of telecommunications and informatics, telematics is another technical frontier that is transforming commercial dealership insurance. It involves the use of GPS and onboard diagnostics to monitor vehicle usage in real-time and for dealerships, this gives them valuable insights into how their vehicles are being driven and what risks may impact their ability to get insurance and keep it.

Insurance carriers are increasingly offering more favorable rates to dealers that employ this technology on their dealer-owned vehicles like customer shuttles, parts trucks, etc.

The data provided by these devices can prove that dealer personnel are careful when operating them and pose less of a risk of collision-related damage. 

Everything from braking patterns to acceleration and excess speed can all be addressed before it ever becomes a high risk factor for the insurer when looking at costs vs risk. 

  1. Data Analytics & Role in Risk Assessment - Speaking of the role of data, when dealers are looking for commercial insurance, they can use advanced data analytics tools to delve into market trends, historical data, and even weather patterns to predict risks they may be facing when it comes to future insurance claims. 

By leveraging predictive modeling, dealers can make more informed decisions about what kind of coverage they need which helps them reduce the likelihood of either overinsurance or underinsurance (and neither are ideal). The ultimate goal is adequate protection for dealership assets. Data can be a big part of that for your store.

  1. AI in Claims Processing for Better Efficiency - One of the most time-consuming aspects of any insurance process is claims administration. Traditionally, this involved a manual review of the details of the loss, related documents, and assessments of adjusters. It’s always a tedious process.

AI is changing the game by automating and streamlining much of the claims process. How does this benefit you as a dealership? AI algorithms can quickly analyze vast amounts of data, including images of damage and documents to better assess the validity of claims. This speeds up the process but also helps guard against fraud. Your dealership can benefit from overall faster claims resolutions which lets you get back to business faster. That saves you money, time, and in some cases, your reputation.

  1. The IoT is Impacting Security and Loss Prevention -  The Internet of Things (IoT) is connecting devices like never before and dealerships are leveraging this connectivity to enhance security on the lot and prevent losses. Using security cameras and sensors that connect to networks can help dealers craft an overall insurance strategy with an eye on reducing risk and saving money on their policies.

One example is having smart sensors installed that can detect unusual activities on the  dealership premises which would trigger immediate alerts to security personnel or local law enforcement. Connected security cameras can not only deter thieves but also provide valuable footage for investigators and claims adjusters. 

By using connected technologies, your dealership can proactively prevent theft and vandalism which in turn helps secure a more favorable rate when shopping for commercial dealership insurance. Anything that an insurer sees as reducing risk and making the claims process easier in the event of a loss is music to their ears.

As dealerships navigate the sometimes complex and frustrating process of finding the best insurance to protect their business, it’s always beneficial to embrace the technology that makes it easier for an insurer to say ‘Yes’ and to give you a rate you can afford. 

DealerSure is here to help you get the credit you need for tech that helps get a better insurance plan with rates and coverage that works best for you. We’d love to see what coverage you have now if you are looking to change providers…reach out here and let us show you how we can help.

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