Car Insurance Shopping is Broken, but Technology Can Help

Shopping for car insurance can be frustrating, agonizing, and in some cases downright painful. But by utilizing blockchain, this broken industry is about to change.
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Stay informed to save you time, money and headaches
Insurance. It's one of those things that we all need, but dread shopping for. The experience of shopping for insurance is so notoriously unpleasant that most people compare it to getting teeth pulled. To make things worse, shopping for insurance means giving out your private information to dozens of companies that may not care about protecting it. But with advanced double-blind blockchain encryption technology, that will all be a thing of the past. So read on as we go over how even though insurance shopping is completely broken, a blockchain fix is surprisingly simple.
Insurance is Broken
Before we get into how to fix it, we need to understand what's wrong with insurance shopping.

Insurance, unfortunately, is not a one-size-fits-all product. Companies use mind-numbingly complex algorithms to determine the price you will pay.

When it comes to car insurance, the type of car you drive, your age, marital status, and distance you drive to work each day will greatly affect the amount you pay. Insurance companies guard these algorithms jealously, and the result is a completely opaque system where customers don't really know what the rate is going to be until they've already surrendered their personal information and filled out dozens of annoyingly long applications.

Some websites claim to present you multiple offers from multiple companies. However, these sites still use an opaque process and are incentivized to provide you with biased or even false information. For example, Progressive provides this on their site, but they are undoubtedly incentivized to make their own plans seem better. Third-party comparison providers operate on commission, and so they too will be incentivized to present you with whichever provider will give them the largest commission, but may not be the best deal for you.

We think it's time to raise the blinds on these anti-transparent black boxes and develop a solution that helps people find insurance quickly and easily, needing to divulge sensitive personal information to dozens of companies that may not be trustworthy.
The BitClave Blockchain Solution
The idea behind BitClave is that you, the user, are always in full control of your personal information. It's up to you to decide who gets it, and what pieces they do or don't get. With that in mind, here's how the system could work.

A BitClave user needs to buy car insurance. Instead of entering their private information into websites dozens of times in a futile attempt to find the best rate and coverage, they instead use the BitClave insurance search engine. They enter all of the necessary details into their BitClave profile which is then encrypted and stored securely. They can then choose which information they would like to provide to insurance companies to get quotes.
This means they can get accurate quotes while still remaining completely anonymous. How does that work? Insurance companies will get a profile of who is applying (such as their age and car they drive) without knowing exactly who they are. This is especially important in this day and age when corporate data breaches are becoming the norm.

Once the user data is submitted, a search begins and the participating insurance providers will calculate the price quote based on the information provided. The user will see a list of offers (which may or may not include the company name, thus making the experience truly double-blind and unbiased) from which they can choose.

If they choose an offer, then the information is exchanged and the user receives a one-time code to apply for insurance with that provider. As long as all of the details provided to BitClave are correct, then the price given on the site will be honored and the user can choose to purchase the insurance from the provider.
Not Just for Cars, Either
Shifting the paradigm in this way could apply to any type of insurance, such as homeowners, renters, or life insurance just to name a few. No longer will users need to put their personal information at the mercy of dozens of companies that may not really care about their information security.

Filling out form after form will also be a thing of the past as one can simply use their BitClave profile to shop for different kinds of insurance, all with the benefit of knowing that they are in total control of who gets their personally identifying information (and who doesn't).

It's time we ended the opaque black box that is insurance shopping, and instead put the power of information into the hands of consumers.