Will Car Safety Tech Lower Insurance Rates?

With the rise of more technologically advanced cars comes the expectation of safety. Many new features in vehicles, such as collision avoidance and parking assistance, are designed to help make the driving experience a safer one.

With the increase in safety comes the assumption that there will be a decrease in car insurance costs. However, it is never safe to make any assumptions in the world of insurance, and thus it is essential to research the matter.

Car Safety Tech

Every single year new advancements are made in the world of technology. Much of the new technology developed for automobiles has been to make travel safer for all. There’s no doubt that self-driving cars will come around, eventually. In the meantime, here are plenty of innovations to bridge the gap.

Collision warning systems are a common piece of car safety tech. Other features can include automatic emergency braking, lane-keeping assist, 360-degree camera, blind-spot monitoring, pedestrian detection, cabin camera, and adaptive headlights. 

Tech Effectiveness

The latest Consumer Reports indicate strongly that the latest advancements in car safety technology do work as intended. They prevent collisions or reduce the severity of them when unavoidable.

Naturally, this means that lives can be saved and injuries avoided. However, there is a negative worth discussing at this point. Much of the technology available today is hidden behind increased expenses. A car with additional features is not as affordable as a more basic model, so it will not apply to everyone.

Technology vs. Human Error

While it is true that technology has been working hard to make driving a safer experience for all, there are some mitigating factors to consider. According to recent research, human driving has been getting worse, even while the technology gets better.

Bobbie Seppelt, from MIT, has been studying part of this phenomenon since 2015. The study has focused on driver attention and has found that distracted and multitasking drivers have become more common.

Furthermore, the study found that when car safety tech is at play, there are two types of users. First, there are the people who trust the tech, sometimes even going so far as to experiment with it or even rely on it too heavily. Conversely, some may outright stop using the technology.

Car Insurance And Technology Costs

While these advancements in car safety tech meet their intended goals – to save lives – they do so at an increased cost. This, in turn, makes it more expensive for insurance companies to replace.

It doesn’t take much to realize where this train of thought is leading. With the new technology costing more for insurers to replace, there is little incentive to decrease insurance plans. 

For example, The Zebra pointed out that a regular bumper would cost between $300 and $700 to replace, with a bumper with sensors would cost more than $1,000 to replace. When looking into how much is saved, it turns out that the average car safety tech can only save around 1% on car insurance. Perhaps this is something that will change in the future, as care safety tech and insurance companies learn to work together.