If you’re like most people, you probably think that vehicles with new safety features should result in lower insurance rates. After all, wouldn’t insurers want to encourage people to drive safer cars?
The reality is that new safety tech doesn’t always lead to cheaper insurance premiums. Even if you have full coverage, your insurance rates won’t necessarily go down just because your car is now equipped with the latest safety features. In fact, sometimes it can even cause rates to go up.
New safety tech features
Before we jump into why safety tech won’t lower your rates, let’s take a look at some of the new safety features you can find in today’s vehicles. In the past few years, there has been an influx of new safety features designed to make driving safer. These features can be broadly divided into two categories: those that help you avoid accidents, and those that protect you in the event of a crash.
Some newer vehicles are now equipped with technology that gives drivers a 360-degree view of their surroundings. This can be especially helpful when backing up or parking in tight spots.
Many new cars have sensors that can detect an imminent collision and automatically apply the brakes to help avoid or mitigate the accident.
Some newer cars are now equipped with technology that can scan intersections for oncoming traffic and pedestrians, and apply the brakes if needed to help avoid a collision.
This technology uses sensors to detect when a car is straying out of its lane and will automatically steer the car back into the lane.
Adaptive headlights swivel to follow the direction of the driver’s turn, providing better visibility around corners.
Some newer cars now have airbags that deploy from the center of the steering wheel, providing additional protection for the driver and front passenger in the event of a side-impact collision.
Adaptive Cruise Control (ACC)
This technology uses sensors to detect the speed and distance of the car in front of you and automatically adjusts your speed to maintain a safe following distance.
Blind Spot Monitoring (BSM)
This technology uses sensors to detect when there is a car in your blind spot and will provide a visual or auditory warning to the driver.
Rear Cross-Traffic Alert (RCTA)
This technology uses sensors to detect when a car is approaching from the side while you are backing up, and will provide a visual or auditory warning to the driver.
Safety Exit Assist
These are just a few of the many new safety features that are now available on today’s vehicles. All of these new safety features are helping to make cars safer than ever before. By making use of these technologies, you can help to protect yourself and your passengers from harm.
Why safety tech won’t lower your car insurance rates
Despite the widespread adoption of safety tech in new cars, many drivers are still under the impression that these features will result in lower car insurance rates. However, there are a few reasons why this is not the case.
- New car technology makes cars more costly for insurers to repair and replace. This is because the technology is often proprietary and can only be repaired by specialized technicians.
- Technology doesn’t negate driver error. Even with the most advanced safety features, drivers can still make mistakes that lead to accidents.
- There are insufficient data about the technology. Insurers rely on data to assess risk and set premiums, but the data about safety tech is still relatively limited. As a result, it’s difficult for insurers to accurately assess the risk associated with these features. There is potential for discounts in the future, but at the moment, safety tech won’t lower your car insurance rates.
- Insurers consider more than just the safety of the car when setting rates. They also look at things like the type of car, the driver’s age, driving history, where the car will be driven, and so on.
Other ways you can lower your car insurance rates
There are a number of other things you can do to lower your car insurance rates, including:
Rates can vary significantly from one insurer to the next. By shopping around, you can make sure you’re getting the best rate possible.
Rates can also vary depending on the type of coverage you need. Make sure you’re comparing apples to apples when you’re looking at quotes.
Choose a higher deductible
A higher deductible will lower your premiums, but it’s important to make sure you can afford to pay the deductible if you do have an accident.
Take advantage of discounts
Many insurers offer discounts for things like having a good driving record, being a student, or taking a defensive driving course.
Bundle your policies
You can often get a discount if you bundle your car insurance with other types of insurance, such as homeowners insurance.
Maintain a good credit score
Your credit score is one of the things insurers look at when determining rates. Maintaining a good credit score will help you get the best rates possible.
These are just a few of the things you can do to lower your car insurance rates. By taking advantage of these tips, you can save money on your premiums.