Google has found another legacy market to disrupt: selling car insurance. The search engine giant on Thursday introduced to California a new service to shop for car insurance quotes.
Such a service has been anticipated by California since Google earned its state license nearly two years ago to be a resident insurance producer, under the name Google Compare Auto Insurance Services, Inc. The service is likely to expand elsewhere soon, as evidenced by this list of 48 states (plus the District of Columbia) where Google has already obtained a license.
A quick review of the new site shows how, like many other Google products, it builds a detailed profile of its users.
First, it asks for your zip code (the clever default is 90210). Then, it asks if you want Google to fill out your form. If so, “we’ll share your name, address and date of birth with third-party providers to pre-fill the answers in our questionnaire about you, your car and any additional drivers.”
Answer yes, and voila: Within a few minutes, it tells you exactly what cars you drive. And whether or not you buy any insurance, its privacy policy says it will keep quote information for six years.
Google says it is comparing and selling insurance from 14 partners, include MetLife and Mercury Insurance. Other partners shown by state records include the Permanent General Assurance Corporation, Viking Insurance Company of Wisconsin, Workmen’s Auto Insurance Company and the California Automobile Insurance Company.
“As Google Compare for car insurance rolls out to more states, we’ll also be introducing ratings and reviews, as well as local agent support for providers with agent networks,” said Jerry Dischler, vice president of product management for Google’s AdWords, in the Thursday blog post introducing the new service.
Along with the money Google makes from commissions, getting into the auto insurance business might also help the Internet giant in its quest to develop and market self-driving cars. A report published Thursday ahead of an auto show in Geneva said self-driving cars could transform the car insurance industry.
“In the long term, insurances might need to radically shift the risk they will cover for, from ‘human error’ to ‘technical failure,'” said the report by McKinsey & Co.
Above: A report published Thursday by McKinsey & Co. predicted how self-driving cars will change our lives and a number of industries, including car insurers.
