Google has launched its new car insurance price comparison tool. This move has long been rumored after the company launched a similar product in the UK. An even more exciting rumor from a Forrester analyst, “If you think about what’s going on with self-driving cars in the future, Google is really going to have to understand how insurance companies price risk because the whole model is going to change.”
It’s unclear how much revenue Google would generate from this auto insurance comparison site, as consumers may not be prepared to buy from an aggregator like this at present. But auto insurance companies write $175 billion in premiums for private passenger auto insurance yearly, and the typical insurance commission is somewhere around 10%. (Some of that may be shared with partners like CoverHound, however.) But for Google, the comparison site may not be just about an additional revenue stream – it could be about collecting more information on how the different insurance companies price the same risk. Google can use that information if it wants to underwrite auto insurance itself in the future.