Whether you operate an insurance company or are part of the automobile industry, consider the advantages of implementing car insurance mobile app solutions if you’re seeking ways to enhance service quality. This technology can provide a competitive edge to your business.
State Farm, GEICO, Progressive, and Allstate are some of the most prominent car insurance companies using mobile apps for their business. With 18% of the market share, State Farm holds the first position in the car insurance market.
So, if you are considering building a State Farm-like car insurance app for your business, you are on the right path. But one standard query is how much State Farm-like car insurance app development costs.
In this blog, you will explore the factors influencing the cost to build car insurance mobile app like State Farm and the market stats of the car insurance market.
Why Should You Invest in State Farm Like Car Insurance App Development?
With plenty of opportunities for new players to enter the auto insurance market, the car insurance domain is currently in a state of growth. Here are some key statistics that prove it’s an excellent opportunity for your business:
- The Global car insurance market is expected to reach $1620.2 billion by 2028.
- The average annual automobile insurance rate now exceeds $6,200 in some regions.
- The market size of automobile insurance in the US grows at an average of 2.3% yearly.
Developing a car insurance app can benefit businesses operating in the insurance industry. Here are some key advantages:
- Enhanced Customer Engagement
- Convenience for Policyholders
- Claims Processing and Management
- Geolocation and Telematics Integration
- Cost Savings and Efficiency
- Data Analytics for Risk Assessment
- Competitive Advantage
What is the Cost to Build a State Farm like a Car Insurance App?
The development cost for an auto insurance app like State Farm is usually $45,000 to $60,000. But, opting for additional features and functionalities can result in a higher overall cost.
The exact cost to build a car insurance mobile app like State Farm depends on several factors.
Factors that Influence the Cost of Car Insurance Apps Like State Farm
Factor #1 – Platform
The choice of platform significantly impacts the cost of developing an automobile insurance app. Options like iOS and Android offer distinct features and advantages, leading to variations in your app development budget based on the selected platform.
Factor #2 – Team Type
The types of your app development team significantly influence the overall cost. Opting for an in-house team will incur higher expenses than outsourcing the development to a third-party company.
In-house teams often entail more overhead costs, making them more expensive, whereas outsourcing to a company specializing in insurance and other fintech software development services can be a more cost-effective alternative.
| Team Types | Approx. Cost |
| In House Team | $1,50,000 |
| Outsource Company | $60,000 |
Factor #3 – Team Location
The location of the chosen development team is another crucial factor influencing costs. Outsourcing development to groups in the United States or the UK is likely to be more expensive compared to outsourcing to teams in Asia. This difference is primarily due to the higher cost of living and wages in the United States compared to other nations.
| Team Location | Approx. Cost |
| US | $180,000 |
| Europe | $120,000 |
| Australia | $170,000 |
| Asia | $50,000 |
Factor #4 – Features and Functionality
The cost of developing an auto insurance app is heavily impacted by the features you opt to incorporate. Including more features, such as a payment gateway, chatbot, etc., increases the overall development expense.
So, it is crucial to thoughtfully contemplate the features you wish to integrate into your car insurance business app before commencing the development process.
Must-Have Features of State Farm Like Car Insurance App Development
Vehicle information
The initial and primary aspect of prioritizing developing your Android or iOS mobile insurance app is including a vehicle information feature. This functionality lets users input vehicle details, facilitating the seamless discovery of insurance options. It reduces user effort and elevates the quality of service provided.
Push notification
Push notification stands out as an essential feature for automobile insurance apps. It serves a dual purpose by reminding users of impending insurance renewal dates while assisting insurance companies in optimizing their marketing efforts.
When aiming for substantial conversions through a push notification app marketing strategy, it is advisable to craft a compelling and well-thought-out push notification strategy.
Documentation
Another crucial feature to emphasize when contemplating the development of an auto insurance app is documentation. This feature empowers app users to upload images of their documents, streamlining the entire process and alleviating the need for users to endure long queues when registering car insurance documents.
Geolocation
Geolocation is a vital aspect to prioritize in developing a car insurance app. This functionality facilitates real-time tracking of vehicles for both drivers and insurance companies, opening up opportunities for geo-based marketing.
It becomes particularly advantageous when the mobile app development company adheres to the best practices for integrating geolocation into mobile apps.
Filters
As users vary in their needs and expectations regarding insurance packages, incorporating a filter option can prove advantageous. This feature empowers users to customize the list based on their preferences and requirements.
Policy review
Another essential functionality to prioritize in an auto insurance app is policy review. It allows users to review comprehensive details related to any policy, encompassing the policy number, type, effective and expiration date, and the specific set of vehicles to which it applies.
Customer support
Incorporating a customer support option into your app is a valuable initiative in response to the escalating competition in the auto insurance market. This feature empowers users to query insurance companies and receive relevant real-time solutions. Ultimately, this fosters stronger business relationships between the parties involved.
The Bottom Line!
For a rough estimate, building a car insurance app with basic features could start from $40,000 to $60,000. However, the cost could range from $100,000 to $200,000 or more for a more feature-rich and sophisticated app similar to State Farm.
So, if you focus on all the features mentioned above or factors for native app development, car insurance app development costs would range between $47,600 and $59,500.
It’s crucial to consult with an insurance app development company like VLink to get a more accurate estimate based on your specific requirements and the current market rates. Remember that technology and market trends may have evolved since my last update, so obtaining recent quotes from development teams is recommended.