A new AI tool to help motorists save money on car insurance has been launched, with the potential to slash more than £200 from the annual cost of cover.
Price comparison website MoneySuperMarket has developed its AI-powered ‘price optimiser’ to identify areas that could save its customers money.
By analysing individual quotes, the tool is intended to make the car insurance buying process more transparent.
During initial tests using the MoneySuperMarket website, some 83 percent of users saw a reduction in their insurance quote using the price optimiser tool.
By eliminating unnecessary aspects of cover, the drivers saved an average of £233 on each car insurance policy.
AI-powered car insurance savings
Once an initial insurance quote has been generated, the AI tool works through it in more detail, identifying which elements could be contributing to a higher price.
The price optimiser evaluates a wide range of car insurance factors such as mileage and payment type, along with the driver’s employment details and address.
When analysing mileage, the price optimiser can compare a car’s registration number against MOT data held by the DVLA. This can check a driver has not overstated their average mileage based on the actual distance driven in previous years.
Where drivers select third party or third party fire and theft coverage, the price optimiser can highlight where a fully comprehensive policy may actually result in a lower price.
Factors such as adding driving licence information to gain a more accurate quote, or considering if optional extras such as breakdown cover add value for money, are also included.
Small changes make a big difference
After running through the price optimiser process, the MoneySuperMarket website will instantly generate a new quote based on the choices made.
MoneySuperMarket also offers an AI chat function, which is designed to answer more detailed questions about specific policies, and whether the level of cover is sufficient.
Lis Barton, chief customer officer at MONY Group, which includes MoneySuperMarket, said: “Price optimiser makes it easier for people to see what really affects the cost of their car insurance. Small changes can make a big difference, and this tool shows that clearly so drivers can choose what works best for them.”
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.