High-tech features on cars drive up insurance rates. The blind-spot monitoring, as well as backup cameras, are some of these features. We feel safer but with that comes a heavy price.
With lower gasoline prices, more miles are driven now. With more miles, comes increased risk of accidents.
The Information Insurance Institute admits that these high tech devices are expensive to repair. An example is the repair of a bumper. A 2014 model car bumper repair costs $1,845. In contrast, the cost for a 2016 model is $3,550.
Consumers are advised to check out insurance rates before purchasing a new vehicle. Other changes in life should also be considered. For example, marriage and a job change.
Michigan has a ‘no-fault’ insurance system. It is notorious for its high insurance rates. Other factors that result in higher car insurance rates are distracted driving, faster driving and legalized marijuana. Texting and cell phone usage are additional problems.
Some drivers have developed a false sense of security due to high tech assistance and are therefore less attentive when driving. A high tech feature such as antilock brakes did not reduce accidents but resulted in more aggressive driving. Drivers rely heavily on this feature. The same applies to collision warning systems.
High tech safety/driver assist systems on many new cars today as mentioned before, cost a lot to fix. Sensors and cameras are located in vulnerable places such as grilles and bumpers.
There is another factor that has yet to be built into new car insurance. This is the cost of hacking into new car systems. This will further increase the cost of vehicle insurance.