New Vehicle Safety Tech’s Impact on Insurance Costs
New vehicle safety technology, such as automated emergency braking, is designed to improve driver safety. Research indicates these Advanced Driver Assistance Systems (ADAS) can reduce crash risk by as much as 50%.
However, this innovative technology isn’t without its drawbacks. Increased safety comes with a potential increase in insurance rates.
A file image of cars on the road. (WJAR File Photo)
“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,” explained Bankrate Insurance Analyst Shannon Martin.
So, how can consumers leverage safety technology without a spike in insurance costs? Martin recommends comparison shopping before heading to 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,” Martin said. “You can pull the full VIN number of the cars and the different trim levels and get quotes with your insurance carrier.”
She 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 noted that repair costs for these advanced features will likely decrease as they become more common. Until then, she suggests sticking with standard safety features.
For example, Martin said a basic rearview backup camera can be a wallet-friendly safety feature, but if it’s integrated with an entertainment system in a luxury car, repairs could become costly.
