Driver Assistance Systems Don’t Equal Lower Insurance Premiums - Keating Agency Insurance

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driver assistance systemsCar manufacturers and the government seem to have gone all-in on driver assistance systems.  Both groups believe technology is making roads and drivers safer.

However, these new “safety features” haven’t translated into cheaper Auto Insurance premiums.

There are actually some good reasons for that.

Driver Assistance Systems Make for Costly Repairs

In general, driver assistance systems make driving safer.  How much safer is the question.

The Insurance Journal reported that a group of 20 automakers pledged to install forward collision-warning and city-speed automatic emergency breaking in nearly every one of their vehicles by 2020.

It’s believed these systems can reduce accident frequency by as much as 25%. Still, Auto Insurance premiums remain high for these cars.

driver assistance systemsOne reason is the lack of standardization of features among manufacturers.  Just because one Toyota model has collision warning, it doesn’t mean all other Toyota models have that same feature.

Additionally, if automakers are keeping statistics on improved safety from driver assistance systems, they aren’t sharing the information.

Groups like the Insurance Institute for Highway Safety study showed that automatic breaking potentially reduces rear-end crashes by 56%.  Unfortunately, insurance companies don’t know what safety features come with each car.  Drivers may claim their car has a feature it doesn’t to try to save money.

Repairing vehicles with safety technology is an added expense for Auto Insurance companies.  Sensors and cameras central to detecting the need to stop, leaving a lane, or safely back up are placed all over the car. The days of simple, low-cost car repairs have all but vanished.

As the technology becomes more standard and more information about its impact is known, Auto Insurance rates will likely go down.  Repair costs may go down as well.  Unfortunately, no one knows how long that will take.

At the Keating Agency, you will work with one of our local, independent insurance agents to find a policy that’s right for you and, perhaps, provides discounts for safety technology.  We work with more than two dozen companies so we can keep our focus on our clients and their needs.

For 50 years, our family-owned business has built its success on high-quality service and the relationships we build with our clients.  Give us a call to find out just what we can do for you.