Auto Insurance: Does High Tech Mean Higher Costs?

You know, the cars we drive today are safer
than ever before. Seat belts and air bags are mandatory standard
equipment on the cars we drive. Newer cars have backup cameras, sensors that
keep us in our lanes and even automatic braking systems. And yet, despite these advances, the Northwest
Insurance Council reports that insurance rates for automobiles have gone up about 14% over
the last four years. So, does high tech in our cars mean higher
costs for for auto insurance? Not exactly. Let’s take a closer look. It’s true that technology, which makes cars
safer overall, is also more costly and complicated to repair. Putting a new bumper on this baby might not
cost much more than it did five years ago, but replacing the computer system that makes
the lane changing sensors work? Well, that’s going to cost a lot more. But there are other factors driving auto insurance
rates across the country as well. Lower gas prices and an improved economy have
brought more cars out onto the road and those cars are driving longer distances for work
and for pleasure. That leads to more accidents. Also, drivers today are more addicted than
ever to their cell phones and that’s caused a dramatic rise in the number of crashes related
to distracted driving. In addition to the increase in the number
of accidents, there’s also been an increase in the severity of the injuries suffered by
people in those accidents and we all know that the cost of healthcare increases year
after year, which means the cost of treating those injuries goes up as well. All of these factors contribute to the cost
of auto insurance, but there is good news: As cars become smarter and safer, they’ll
prevent accidents and injuries, especially as drivers learn to keep their eyes and their
hands on their driving and off their smart phone. And, the technological advances in the car
you have today might earn you a discount on your auto insurance. So check with your professional insurance
agent to see what discounts you might qualify for. Safe driving and thanks for watching.

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