Consumers increasingly expect their connected devices, including their cars, to evolve and improve during their ownership period. Software operating through embedded connectivity will be a key element steering and defining a connected car driver’s experience.
Automakers are maximizing their investment in connectivity by leveraging the delivery of features over-the-air (OTA), to continue to personalize and enhance the customer experience in real time. Examples of OTA deliveries range from infotainment related updates — including refreshing map or GPS information, audio updates, new app versions, and streaming services — to drive control system updates — including feature upgrades and security patches related to Advanced Driver Assistance Systems (ADAS).
OTA updates allow automakers to fix, maintain and improve the vehicle software systems remotely, which saves drivers time and money as they do not need to physically visit a dealership.
In addition, connected cars can detect and transmit diagnostic and operational data from the vehicle systems and request OTA updates, when necessary, which can help reduce the occurrence of catastrophic or safety-related events.
The difference in user experience often comes down to how quickly updates can be made, issues can be fixed, and new features become available.
Insurance is a major contributor to the total cost of vehicle ownership for consumers. Automakers are looking to improve cost of ownership and the overall customer experience by leveraging vehicle and driving behavior data to enable usage-based insurance (UBI) products, such as Pay-As-You-Drive (PAYD) and Pay-How-You-Drive (PHYD). Lower insurance premiums can contribute significantly to making car ownership more affordable, benefiting consumers and automakers.
In our survey, we asked consumers if they were aware that connected vehicles can capture and transmit telematics data, which can potentially be used for insurance discounts, and nearly two-thirds (67%) of respondents were. Only 22%, however, have used their data to obtain insurance discounts. Among those who had not used their data for insurance discounts, the overwhelming majority (71%) said they would be interested in doing that (Figure 5).
So, how can automakers help their customers take advantage of their telematics data?
By creating awareness of these insurance discount opportunities and educating consumers about the potential benefits of participating.
By providing a seamless way for customers to engage and opt in, through their automaker’s connected services program.
By engaging with a well-managed telematics exchange, automakers create an opportunity for consumers to shop for insurance using their own driving behavior data.
Telematics datasets will continue to grow and evolve, and they will help to bring about services and solutions beyond UBI, creating the opportunity to improve other areas of the vehicle ownership experience.
