KCBS_740SAN FRANCISCO (KCBS) — New cars have many more safety features than models from even four or five years ago, but those slick new devices won’t get you much of a break on the price of your auto insurance.

Traditionally, our car insurance rates have been based on risk.  So you’d think insurers would give us a break for technology that, presumably, will lower our risk of wrecking.

“Whether it be rear backup cameras, blind spot monitoring, any collision preparation systems, or anything like that really don’t move the meter,” Neil Richardson, a licensed insurance agent and consumer advisor at The Zebra, an insurance comparison website, told KCBS.

Their new study reveals drivers using vehicle safety and security technology save less than 1% on their insurance. 17 states show no savings at all.  There are a couple of things that will save you money, but they’re not new.

“There’s an alarm discount, so either a passive, or an active anti-theft device, and then electronic stability control,” Richardson said.

Richardson says insurance companies are slow to acknowledge new developments.

Once newer safety features have been around a while and become more widely adopted, we may begin to get a bit of a break.


Comments (5)
  1. You also need to realize that even though new safety features will decrease occurences of accidents, when the accidents do happen, the cost to repair vehicles equipped with those features is more costly. Just think about the difference in cost to repair normal bumpers versus ones with sensors and cameras. The decrease in frequency is offset by the severity of property damage and collision losses. Insurers are “slow” because there is not enough real world claim data yet for insurers to adjust pricing for these new features. As more drivers adopt the technologies, insurers will inevitably use the available data to price competitively.

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