How Technology Affects Car Insurance
The amount of technology in cars today is simply amazing. Features such as lane assist, automatic braking, adaptive cruise control, back up cameras and much more are now standard in the majority of cars sold today. With these features becoming more widespread, how does this affect your insurance?
To start, insurance companies embrace all these innovations because statistically they do help to prevent accidents or at least reduce the severity. The majority of companies will factor in these features when providing you with a quote. Even though some manufacturers tend to charge more for these features, it may save you money over the life of the car to have them.
One of the reasons insurers are willing to reduce premiums is due to the cost of injuries in car accidents. It tends to be one of the most expensive elements of auto insurance in Ontario. By reducing the amount of injuries, cars with advanced safety technology tend to save insurers and yourself money over the long run. Part of the technology that helps with this, is actually the technology that helps design vehicles. Today vehicles are designed to allow the outside to crumple, absorbing the energy of the accident, while the inside shell is extremely strong to protect you from injury. This helps to prevent whiplash, as the vehicle absorbs the brunt of the energy, rather than us.
What are the features that are currently available?
Autonomous Braking - Automatically applies the brakes for you, if the vehicle senses you are about to hit into another car, object or person.
Lane Departure - Gives you a warning if you are about to leave the lane without your blinker on. It may also stop you from changing lanes if there is someone in your blind-spot.
Blind Spot Detection - Has cameras and sensors to help you see in the blind-spots of your vehicle. It may make a noise, or flash a light in order to tell you a vehicle is there.
Adaptive Cruise Control - Automatically adjusts your speed when you are on the highway. It helps follow the flow of traffic, rather then constantly adjusting your cruise control.
Back up Camera - Helps you see behind the car while backing up. May also have sensor that tells you how far away you are from an object.
Of course nothing is perfect, and there is a downside to these features, which is the cost to repair the vehicles after an accident. However all this technology comes at a cost. All those sensors, wires and computers are easily damaged in even a small fender bender. If you look at the cost to replace a bumper on a new car today vs 20 years ago, it is a large difference. This directly affects your insurance as claims tend to be more expensive, due to the cost to fix and replace all the technology after it has been damaged.
In the long run technology will help the roads be safer with fewer and less severe accidents. There will be many bumps in the road along the way, but car manufacturers are headed in the right direction. If you have any of these features on your car, please make sure to tell your broker as they may offer a better rate.
If you have any questions on how this might affect your insurance please do not hesitate to call us at 905-623-4406 and one of our experienced brokers would be more than happy to help you.