With Americans clocking more time behind the wheel than everbefore, additional miles can be a challenge to auto insurers. Howcan insurers make a dent in accident frequency and severity, bothof which are currently on the rise?

Data tells the story. Americans drove a combined 3.1 trillionmiles over the 12 months through March 2016, with the average autoliability claim for property damage at $3,493 and bodily injury at$17,024, according to research from Verick Analytics. Notcoincidentally, in 2015, the United States experienced the "highestone-year percentage increase in traffic deaths in half a century,"according to the National SafetyCouncil. But what if an insurance company could reduceboth the frequency and severity of claims?

By having telematicsdata available for claims management, consumers andinsurers alike could gain a better understanding of how to mitigateclaims — almost before they happen. Data from a vehicle could alertdrivers to vehicle problems, such as low tire pressure that mightlead to a blowout, or warn of impending storms so the car could beunder cover, protected from hail or similar weather related perils.By offering driver feedback on vehicles and driving behavior, aninsurer can engage customers in new practices that provide value,with the potential for increasing customer satisfaction andloyalty.

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