From Our Partners
Laurie Bauer | Business Development Manager, TW Insurance Brokers
Will Safer Cars Mean
Cheaper Insurance?
Advanced auto safety technology, once reserved for top-of-the-line luxury vehicles, is
becoming increasingly common in new cars. As safety engineering continues to advance,
features such as auto braking systems, blind-spot detection warnings, rear-view cameras,
and more are beginning to find their way into the mainstream.
Vehicle safety remains a top concern for new-car
buyers, and the increasing popularity of car safety
technology has many drivers wondering how it will
affect their insurance.
Drivers often assume that modern safety
features lower insurance premiums by reducing
the likelihood of a collision. While new car safety
technologies can help you avoid some of the most
common accidents, they cannot guarantee that your
car will be safe from all potential road hazards. In
fact, when collisions do happen, vehicles equipped
with a suite of advanced safety features can be more
complicated and expensive to repair. Your insurance
provider factors repair costs into your auto policy
premiums.
Benefits of Owning a Vehicle with New Safety
Technology Features
Opting for increased vehicle safety features doesn’t
go unrewarded by insurance providers. The safety
specifications of a vehicle — such as lane departure
assistance, advanced collision warning, and factoryinstalled
anti-theft devices — are programmed into
your car’s Vehicle Identification Number (VIN).
Your insurance provider uses this information
when calculating your premiums. Some insurance
carriers will offer a discount for select vehicle safety
features, such as an autonomous emergency braking
system or an after-market ignition cut-off system.
Your insurance broker can provide more specific
information about these discounts and can discuss
your eligibility.
The Future of Technology and How It Could
Affect Auto Insurance
As technology continues to advance, the effect
that car safety features have on your insurance
premiums could advance, too. For example, the cost
to install and repair car safety technologies could
decrease over time, or the continuous advancements
in technology could reduce accidents more
significantly. For now, insurers need more data on
the effectiveness of these technologies before drivers
will see a dramatic difference in their premiums.
Though today’s vehicle owners are not likely to
see a breakdown of various discounts associated
with each of their vehicle’s safety features on their
insurance policies, it’s important to think of the
other ways in which it pays to be a safer driver.
Many insurance providers will offer discounts for
drivers who have had no traffic violations in the
last three years. Similarly, drivers who have been
licensed for over fifteen years and are claims-free are
also likely to be eligible for a discount. If advanced
vehicle safety technology helps you to be a safer
driver, it could pay off in the long run.
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