Jun 18, 2019 09:00:00

In some cases, premiums may be higher for vehicles equipped with safety features that reduce the risk of traffic accidents

by

Marc Schaefer

Newer vehicles are equipped with functions to assist with driving and contribute to road safety, and premiums are discounted because they reduce the risk of traffic accidents. However, among them, there are cases in which the premium will increase as a result.

New Auto Safety Features Can Make Car Insurance More Expensive: NPR
https://www.npr.org/2019/06/15/728256381/why-safer-cars-dont-lead-to-cheaper-car-insurance-yet

Since auto insurance has a high risk of encountering a traffic accident, the possibility of paying a premium is high, so the premium set by the insurance company will be high, and if the risk of encountering an accident is low, the premium will be low. Is common.

From this point of view, a car equipped with safety technology such as a collision damage reduction brake has a low premium.

However, according to Verisk's Sunday Perphet, who is analyzing data for the insurance industry, premiums tended to be higher across the insurance industry. Part of the reason is that 'the cost of repairs will be higher if safety technology is installed', Aflac life insurance company Scott Worish says that a normal headlight costs $ 200 (about 20,000 yen). By the way, if it is LED 2000 dollars (about 200,000 yen) if it is LED headlights, a concrete example is given. Similarly, if the bumper has a built-in pedestrian detection sensor, for example, the replacement cost will be higher than with a regular bumper.

According to Tom Carroll of the American General Insurance Mutual Association, 'Safety technologies are coming one after another,' saying that riding a car equipped with safety technologies should lower the risk of a traffic accident, but at the expense of higher costs in some cases. It's difficult for insurance companies to obtain data because car makers are not revealing the details of technology while they are evolving. '

'The insurance company should have data on whether safety technology helps reduce the number of accidents,' said Carmen Barber, a consumer surveillance group, but Amy Bach, a union of policyholders. He commented that insurers tend to be cautious and often slow.