New Vehicle Safety Tech Cuts Crash Risk, But May Drive Up Insurance Costs
By EMILY VOLZ, NBC 10 NEWS
Mon, January 13th 2025 at 4:30 PM
Updated Mon, January 13th 2025 at 4:46 PM
New technology, such as automated emergency braking, is designed to enhance vehicle safety. Research indicates that these Advanced Driver Assistance Systems (ADAS) can reduce the risk of collisions by as much as 50%.
So, why might these features lead to higher insurance rates? Bankrate Insurance Analyst Shannon Martin explains that the cost of repairing these safety features is often considerable.
“Lots of times when you go to the car lot, the dealer might say, ‘Oh, this might save you lots of money on car insurance because it’s the safest car available,’ and while it will make you safer and you might get more discounts for having safety features, the cost of repairing these type of devices can sometimes outweigh the discount you might see on your car insurance policy,” Martin explained.
How can drivers leverage technology for increased safety without incurring higher insurance costs? Martin suggests doing some research before visiting the dealership.
“The best piece of advice I have for people looking to buy a new car is to go to the dealership’s website before you go down there in person,” she explained. “You can pull the full VIN number of the cars and the different trim levels and get quotes with your insurance carrier.”
Martin continued, “So you might be able to find a few vehicles that have some safety features but maybe not the deluxe package, that way you can walk into the dealership with confidence knowing that the car that you’re going to pick can fit within your car insurance budget.”
Martin adds that repair costs for these advanced features are likely to decrease as they become more common. She recommends sticking with basic features for now.
For instance, a standard rearview backup camera is an excellent safety feature that could potentially save money on car insurance. However, when integrated into a luxury car’s entertainment system, repairing it could be quite expensive.
