How to Build a Car Insurance App: Our Use Cases

Car insurance is one of the oldest and most popular fields of the industry, and more and more insurance companies offer products in web and mobile applications. They are accessible and user-friendly, and they provide quick assistance in case of a traffic incident.

We have compiled a guide to tell you how to develop a car insurance app and what you may encounter while creating it.

Car Insurance Apps’ Key Challenges and Features

If you want to build an app at the level of Root, GEICO, Metromile, and other top auto insurance products, you have to know about the challenges in order to avoid them. The main ones are:

Claims processing. Artificial intelligence (AI) and machine learning (ML) technologies help speed up and improve claims processing, and reduce manual processes and issues resulting from the human factor.

Insurance fraud. This problem can be thwarted by AI, cloud, and cryptographic technologies. They help to detect suspicious and fraudulent activity faster; take countermeasures; and reduce the risks of inflated claims, fake driver and vehicle damage diagnoses, and employee fraud.

Data processing and analysis. To receive data from printed documentation easily, you can use optical character recognition. Extract, transform, and load (ETL) systems structure information for other purposes. Cloud data storage improves data safety and reliability.

Regardless of the app’s type, you’ll need core minimum viable product (MVP) features:

• A user profile that contains data about the client and vehicle;
• Documentation processing, including access, reviewing, and filtering;
• Claims processing through mobile gadgets to reduce paperwork;
• In-app payments, including user credit cards saving and personal data protection;
• Vehicle data processing — your app can collect car location data, build the route, and track it;
• Roadside assistance — urgent advice, emergency calls from the app;
• Live chat and (or) intellectual chatbot;
• Notifications about the policy’s termination, discounts, new terms, or claim status; and
• Multilingual and 24/7 user support.

Car Insurance App Development and Cost

To make a car insurance app, follow a few common steps:

• Hire a development team and turn your abstract idea into a precise shape — define written requirements and the list of features for MVP and full-fledged app;
• Define user interface and user experience (UI/UX) design— navigation, menus, item layout, color, and graphic aspects;
• Select technologies to implement all the features, then create an MVP and final app;
• After developing an MVP with all improvements, it has to be thoroughly tested and delivered; and
• Place the product in mobile app stores, then continue to monitor it, supporting customers and regularly updating the system.

Integration with third-party application programming interfaces (APIs) and software development kits (SDKs) will help you to develop a car insurance app in the shortest time and not sacrifice quality. To gain a competitive advantage, you can add advanced capabilities, such as geolocation and tracking, IoT-based telematics solutions, computer vision (CV) object recognition, etc.

To estimate the approximate cost, you have to know the development team composition and each specialist’s hourly rate. On average, native app development costs (both iOS and Android) are between US$45,000 and US$70,000. The minimum price of building such systems ranges from US$14,000 to US$18,000.

Our Use Cases

At CHI Software, we successfully develop car insurance solutions for startups, enterprises, and businesses of various sizes.

One of the clearest examples of our capabilities is the Connected Cars X app that we developed for a taxi fleet owner in the Middle East. The application uses AI for processing real-time and aggregated data to get behavior analytics. It helps to solve the client’s core problem: the fast deterioration of vehicles.

The solution analyzes the car’s driving scores, trip comfort, aggressiveness scores, braking intensity, vibration level, and optimal speed. Thanks to our product, the fleet owner can collect real-time data, analyze the causes of rapid vehicle deterioration, and successfully negotiate the insurance company’s rates.

We also create additional value by integrating cloud solutions from Google Cloud, MS Azure, AWS, and other providers. An example of our work is a cloud-based insurtech platform for global providers. It supports every phase of the claims process in real-time. The data storage is also added to the system. Thanks to it, recorded information is accumulated in a safe place for further reporting.

Conclusion

This article has touched on some issues related to developing an insurtech solution for vehicle owners. However, the topic is incredibly vast, and it is simply impossible to cover everything at once.

In our blog post, you can read about many innovative tools that help you monitor driving safety, track vehicle movement along a route, control fuel levels, or process enormous amounts of insurance data in seconds. Explore how to build a car insurance app in our full article.