What impact does the EU Data Act have on drivers and insurance companies?

What impact does the EU Data Act have on drivers and insurance companies?

According to a report by www.echo24.de, a new law aims to regulate and simplify the use of data from connected devices, which could be a goldmine for insurance companies. The “Allianz” in particular sees the vehicle data made possible by the “EU Data Act” as a great opportunity to develop dynamic and personalized insurance tariffs.

The impact of this new data integration could have both positive and negative consequences. On the one hand, the real-time transmission of vehicle data enables more efficient damage settlement and quick assistance in the event of an accident. On the other hand, analyzing driving behavior can result in individual insurance rates that could be more expensive for high-risk drivers.

Technical challenges also arise because the reliability of the sensors installed in electric cars is doubted. Errors in detecting speed limits could affect the accuracy of the data and therefore the fairness of insurance rates.

Overall, integrating vehicle data into insurance rates will have a profound impact on the market, consumers and the automotive industry. The development of personalized insurance models and improved accident regulation are positive aspects. On the other hand, unreliable data and more expensive fares could be a concern for high-risk drivers. The auto industry should therefore keep a close eye on how vehicle data integration impacts the market and consumers.