Effectiveness of ai-based chatbots in assisting vehicle insurance buyers in rural areas

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Shafique Ahmad, Jitendra Kumar Dixit

Abstract

This study evaluates the effectiveness of Artificial Intelligence (AI)-based chatbots in assisting vehicle insurance buyers in rural areas, where access to traditional insurance services is often limited. The research involved a sample of 500 rural vehicle insurance buyers who interacted with AI-driven chatbots to obtain information about insurance products and services. The chatbots were designed to provide user-friendly, real-time assistance and address common queries related to policy options, premium calculations, and claim processes. The findings indicate that AI-based chatbots significantly improved the accessibility and understanding of insurance products for rural customers. Participants reported increased satisfaction with the ease of obtaining information and a higher level of trust in the insurance companies utilizing chatbot technology. Furthermore, the study found a positive correlation between chatbot interactions and customer loyalty, as buyers were more likely to recommend and continue using the services of companies offering AI-based solutions. The study concludes that AI-based chatbots can serve as an effective tool for vehicle insurance companies to bridge service gaps in rural areas, enabling broader market penetration and improved customer engagement. By leveraging AI technology, insurance providers can overcome geographical and infrastructural barriers, ultimately enhancing the customer experience and fostering long-term loyalty.

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How to Cite
Shafique Ahmad, Jitendra Kumar Dixit. (2025). Effectiveness of ai-based chatbots in assisting vehicle insurance buyers in rural areas. European Economic Letters (EEL), 15(1), 1132–1143. https://doi.org/10.52783/eel.v15i1.2492
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