With the emergence of digital technologies such as mobile applications and smartphones, many companies are offering innovative new financial products for digital banking, online payments and money management. Complex financial products can be offered anywhere, via mobile device.
The insurance industry is also being transformed by digital technology that harnesses the power of data. One of these new types of insurance is called “embedded insurance.” With blended insurance, companies – not just insurers – have begun to offer specialized insurance coverage in a variety of ways.
Let’s take a look at what included insurance means, and how it can help you save money on car insurance.
Embedded insurance: what it means and how it works
Accenture defines embedded insurance as “any insurance that can be purchased within a commercial transaction for another product or service.” Examples of included insurance might include purchasing car insurance for a rental car, getting an extended warranty on a new washing machine, or purchasing travel insurance as part of the flight booking process.
Digital technology makes it easier to sell embedded insurance to a wide range of customers in different situations. Spot Insurance (getspot.com) is an insurtech startup that offers specialized blended insurance for purchases like travel, concert tickets, and ski passes. With Spot Injury Insurance, skiers and snowboarders can purchase emergency insurance coverage in addition to their ski passes.
With built-in insurance, companies can offer you the right coverage at the right time – at the precise moment when you might be worrying about “what if I fall down the mountain while snowboarding” or “what if my family gets into a last-minute accident” getting sick before our vacation Large International? Built-in insurance can provide people with a higher level of convenience and peace of mind. It also opens up new ways to save money on car insurance.
Read more: Check out our picks for the best car insurance companies
Another form of embedded insurance is also being implemented in the world of auto insurance. But instead of purchasing insurance from a separate company, you can now purchase auto insurance directly from your auto company.
Embedded Insurance: A new approach to car insurance
Several major automakers have recently begun offering their own auto insurance policies. This is another form of embedded insurance, where you can purchase car insurance directly from the same company that manufactured your car.
Here are some of the major auto companies that now offer built-in auto insurance.
Ford: Ford Insurance
Ford Insure is a special type of auto insurance for Ford vehicles model year 2020 or newer. It uses connected car data to help you save money on car insurance by rewarding safe driving. After four to six months with Ford Insure, you may be able to save up to 40% on your car insurance.
Ford Insure also offers a pay-per-mile auto insurance plan, and there are discounts available if you combine your auto insurance with your homeowners insurance. Ford also offers pet insurance through its underwriting partner Nationwide.
General Manager: OnStar Insurance
General Motors (GM) also offers built-in insurance called OnStar Insurance. This insurance uses in-car telematics to track driving data and reward safer driving. Like Ford Insure, it’s limited to newer vehicles.
If you have a 2016 or newer Buick, Cadillac, Chevrolet or GMC, OnStar Insurance will work with your car’s connected car technology. No additional app or device required for remote communications!
OnStar insurance isn’t just limited to new GM vehicles. Even if you have an older model car, or drive a non-General Motors vehicle, you can still get OnStar insurance — but it will be a traditional car insurance plan, not the IT version that rewards safer driving behavior.
Tesla insurance
Tesla drivers can choose Tesla Insurance to insure their Tesla vehicles, which uses real-time driving data to determine your safety scores. Each month, your Tesla insurance premium is calculated based on the previous month’s driving data and safety scores.
Unlike other IT-driven car insurance programs that can take months to help you get a discount, Tesla Insurance works on real-time data and delivers results quickly. As of January 6, 2024, Tesla insurance is only available in the following 11 states:
- Arizona
- Colorado
- illinois
- Maryland
- Minnesota
- Nevada
- Ohio
- Oregon
- Texas
- Utah
- Virginia
minimum: Embedded insurance is coming to the auto insurance industry. More car insurance companies are looking for innovative ways to use driving data to help you save money. If you’re looking to save money on car insurance, the next big discount could come from within the car!
Our best auto insurance companies for 2024
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