How Advanced Technology in Cars Can Impact Your Insurance Costs

Technological advancement and innovation have helped spur exciting new opportunities and features in the automobile industry. As smart vehicles, electric and hybrid automobiles, and other state-of-the-art models continue to roll off lots, motorists may find their cars more exciting and capable than ever before. However, advanced technology also requires careful reconsideration of possible risks and exposures, especially when understanding your insurance.

Is Technology Making Vehicles Safer?

There are undoubtedly many positive aspects of recent technological advancements in the auto industry in the eyes of insurance carriers. Consider how the following newly available features may impact your policy:

• Advanced driving-assistance systems (ADAS)—Many vehicles now include ADAS, providing motorists with potentially life-saving safety features. For example, ADAS may consist of automatic emergency braking and help drivers avoid drifting out of their lanes. This technology can therefore help limit potential accidents. Subsequently, insurance carriers may offer lower rates if you’re seeking to insure a vehicle with ADAS.
• Telematics—An increasing number of auto insurance carriers have started offering usage-based insurance (UBI). These policies may help you achieve lower rates on your coverage by using telematics to track your driving habits and behavior behind the wheel. For example, telematics devices and applications may record data regarding your speed, mileage and acceleration and braking habits. If such findings show you to be a safe driver, you may enjoy savings on your UBI policy.

What’s the Catch?

Although various technological advancements have helped vehicles become safer, these features are often expensive and difficult to repair or replace. Certain models may require specialists and specific parts, potentially increasing repair costs and vehicle price tags. As such, insurers may need to charge more for auto coverage to account for their potentially greater claims costs.

How to Get Auto Insurance Near Me

Contact Miller Insurance Agency today to learn more about getting the right coverage for your vehicle and how advanced technology may affect your policy.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.