The Use of Drones in the Automotive Industry

Can Drones Help Reduce Automotive Insurance?

In 2016, the Federal Aviation Administration helped push the drone industry forward by allowing companies to operate drones, as long as they followed set guidelines. The industry is now expected to grow to $63.3 billion by 2025. Drones are now being utilized in various industries. For instance, in agriculture, they’re used for crop and livestock monitoring, and irrigation management. Meanwhile, in law enforcement, drones are used by police forces for investigating bomb threats and pursuing armed suspects.

Drones have found their way into the automotive industry as well. They're now a huge part of the sector, meant for practical functions in distribution, manufacturing, and monitoring. We look at how insurance rates can be impacted through drone technology.

Auto insurance reporting

Claiming insurance after a car accident can be a lengthy, manual, and stressful process. This may be especially the case with used cars, from economy models by Toyota to high-end models by Porsche. After all, owners also need to confirm claim history and that the insurance policy was transferred to them. However, Accenture has come up with technology that will enable drones to scan accident sites and report information accurately to insurance companies.

Accenture explains that this works by having fleets of drones deployed throughout major cities. In the event of a car accident, a signal can be sent to the nearest drone station to send a drone to the site to scan for injuries and damage, which it will send back to those involved — these include emergency services in cases of injury and the insurance company for cost estimation. The report the drone sends can also include predictions of costly repairs, including what parts need replacement The insured party also gets a copy of the report to give them information that can help shorten the claims process.

How Lower Insurance Rates Impact Car Valuations?

Insurance rates are one variable amongst many that impact used car valuations. If a car has historically expensive repairs, it will be more expensive to insure, and if technology trends like drones, or connected car solutions can help reduce insurance rates. This leads to reduced depreciation rates if the trend can be sustainable. Although this opportunity seems to be far-fetched, there is a need for capturing accident scene information. Drones will be able to easily inspect these areas without the need for a human to be physically present. The latest models use drone cameras that are designed to capture high-resolution footage. This allows officials to carry out evaluations safely and quickly. An industry favorite, for instance, is DJI’s Zenmuse X5S, which is a long-range camera with focus control, letting you adjust camera settings even if you’re up to 7km away. Enhanced camera stabilization also ensures a more secure data transmission for smoother footage. Using drones for accident evaluations can cut time from hours to less than half an hour while capturing surrounding areas.

Keemut and Insurance

Although Keemut doesn't provide an insurance product, our technology can be used by insurance companies to bypass OBD dongles which are costly physical products that are relatively expensive compared to connecting directly with vehicles through tools that Keemut offers. Until drones come to the market, connected car solutions may be an alternative solution.