Technology in cars has come a long way even in recent years. Dashboards and front consoles are now decked out with communicative, safety, performance, and luxury features made possible by streamlining tech products that we regularly use in our everyday life. Smartphone charging and integration devices are other tech features becoming more commonplace in cars. There are even some driving around with TVs on the back of seats. But with all these great, sometimes flashy features, where does that leave the cost of auto insurance? Never mind the obvious higher asking prices for tech-filled cars at the dealer lots, but what about maintaining the car insurance that is more than likely required? Needless to say, the premiums will be higher with such features now. However, some car insurance companies are known to provide small discounts for those that drive technologically safe cars.
The most popular technological features available for cars are those that assist with or make driving safer. This includes cruise controls, parking assist, cameras, lane changing notifications, and blind-spot detection. These types of features aren’t for the sake of luxury or being flashy but actively contribute to the car’s safety rating, which is what car insurance companies look at when underwriting a policy. These are features that they like to see and will even reward them with small discounts. Some of these features are becoming more common for standard cars, so the discounts don’t make that much of a difference. Still, they are proven to lessen the likelihood of an accident or filing a claim. More luxurious and flashy tech features that have no bearing on the car’s driving ability and safety performance don’t offer the same discounts. In fact, some may result in higher premiums.
All tech features for a car, for safety or luxury purposes, are mechanical parts. These devices aren’t a single piece but rather several small parts making up a complex device and its functions. With all these moving parts, it will cost a bit more to repair, considering the components and replacement costs. This is especially the case for the most technologically advanced features on the market and why newer cars often have higher insurance premiums than older ones. That is also why more vast coverage for cars with features such as these is often a good idea with auto coverages like comprehensive and collision. Of course, this means you will be paying more for car insurance since you desire more coverage –another reason why tech features can increase your premiums. Another way to think about it is that it costs around $1,845 to fix a motion detector bumper. Now, it’s around $3,550.
Without beating around the bush, we can tell you that drivers with safety features on their cars, add-on or standard, apply for discounts of a maximum of 5%, and even that is a little bit of a stretch. The average that people report saving when it comes to this kind of discount is around $2.25 a year.
There is no question of whether or not new tech features will be added to cars in the future. Rather, it’s a question of how much more it’s going to cost and maintain car insurance for. However, as these features become commonplace, we may see insurance rates begin to even out and lower –but that may have to come later.