Source: High-Tech Safety Gear Preventing Crashes – But Raising Insurance Rates | TheDetroitBureau.com . . . Given the significant benefits already being reported – with more vehicles now being sold with even more advanced technologies, the pay-off would seem to be obvious. “To the extent that vehicles get into fewer crashes that will ultimately be reflected in the rate you pay,” said Russ Rader, a spokesman for the IIHS. But that isn’t happening. At least not yet. If anything, there’s evidence that motorists may be saddled with higher insurance rates as lane departure warning and other ADAS technologies become ever more commonplace. But why? Experts say that’s because these systems make use of an array of onboard camera, radar and other sensors that are, in many cases, mounted in the grille, sideview mirrors or a vehicle’s bumpers and fenders. These are all the sort of places that can get dinged in even minor crashes. “If they’re damaged, they’re much more expensive to repair,” James Lynch, the chief actuary for the Insurance Information Institute, told USA Today. “You can’t just go to a shop and pick up a part that you can jerry-rig on. . . . But insurance companies will likely pay close attention to what this all means in terms of the money they pay out for repairs. They may also come under pressure, however, to adjust their numbers to reflect the offsetting fact that there are fewer collisions resulting in injuries and death. And while a replacement bumper might cost an extra couple thousand dollars, even minor injuries can result in tens of thousands of dollars in costs. Indeed, the ultimate goal of the auto industry is to make vehicles so smart they will be able to avoid most, perhaps even all, crashes. Mark Rosekind, the former administrator of the National Highway Safety Administration, has predicted we are approaching an era where “zero highway fatalities” is a real possibility. So in theory this should affect comprehensive, car repair and replacement. Collision should see a savings. Bob Wilson
Looking at an insurance bill, I also hope for savings in each of these: A: Liability (including bodily injury); P2: Personal Injury Protection (including medical and income loss); U: Underinsured Motor Vehicle (Bodily Injury).
Curious what other people are paying to insure their Prius Primes. Mine is $1000/yr for just the Prime and I have 4 other vehicles on the policy and that is with Geico. I think that is a bit high with a clean driving record.
you gotta love the insurance industry. Let's carry their logic to its ultimate conclusion. Pretend 5 or 10yrs forward & now it's impossible to get into any accidents due to safety equipped cars, but cars are 25%-35% more expensive. Your rates are now tripled, despite the 50X reduction in medical & litigation costs. It's good to be a legislator being bought off by the insurance Lobby. And boy - can the insurance industry easily afford to pay their Lobby. .
But fixing those new safety features costs in the hundreds to thousands. Fixing a person can costs in the millions. So lets say/guess vehicle repair costs go up 50%. But accidents with any damage go down 10% and accidents involving personal injury costs do the same. You would expect that 10% of a million would be a lot more than 50% of say $2,000 and you'd end up saving somewhere on that insurance bill. Insurance rates can be crazy. I moved from commuting in the Washington DC traffic every day to being retired to a 20k person town in North Carolina drove less and expected my rates to go down. No, went up. I attribute some of it to the good ol' boy culture here. I see lots more fatality accidents and single car accidents and lots less low speed fender benders.
have you asked your insurance company? perhaps it is exactly the point of the article, plus the carbon fibre hatch, double bubble window and expensive front end parts.
Parts are expensive. People want BSM and RCTA. The modern systems use radars behind the bumper. You knick that bumper at the right angle and it may not be a simple bumper fix. I was getting my car serviced and the service advisor was telling me a story about a customer that is complaining about faulty BSM/RCTA (the error/warning lights were on on the dashboard) after repair... It's possible the body shop didn't realise the radar needed adjustment or they did adjust it but did not configure it properly or the didn't fix the bumper "just right" so that the radar can work. That last option is going to be a huge PITA for repair shops if true.
Sounds like another issue similar to the complex adjustment needed after the Gen 4 windshield is replaced.
I think the best drivers will have fewer accidents, and the worst drivers will have more expensive accidents. In the middle, it gets murkier. I'm glad I don't work for an insurance company. My insurance company gives me discounts for having "Back Up Warning" and "Lane Departure and/or Blind Spot Monitoring".
What is the company name? We have the ability to take our business to someone who does recognize the benefit of safety systems. Bob Wilson
Insurance rates are like trying to nail Jello, If I have a clean driving record and the guy that lives in the county next to Chicago does too his rates are higher. I use American Family Insurance for home and eight cars. Cars I don't drive regularly I just keep fire and theft on them, about $40 a year.
