Why Using Technology Can Save You Money on Car Insurance

These days, technology can be found almost anywhere, including in automobiles. Modern automobiles, for example, come equipped with backup cameras, parking sensors, and touch-screen displays. These, as well as other driver-assist and safety features, are intended to prevent collisions and protect passengers. As a result, one might believe that this would result in lower car insurance rates. After all, many insurers offer discounts to policyholders when risks are reduced.

Drivers can save money on auto insurance in some cases thanks to safety and technology features. Meanwhile, due to technological advancements, deals will not be possible at other times. As a result, people may be unsure whether or not certain items will save them money. Even so, if you’re currently in that category, don’t be concerned. The information provided will help you better understand where you can find tech insurance discounts.

Anti-Theft Tech

Modern vehicles are equipped with not only exceptional safety features, but also anti-theft technologies and devices. As a result, if your vehicle has a burglar alarm, an electronic tracking system, a kill switch, or other anti-theft technology, you may be eligible for an auto insurance discount. Of course, non-tech anti-theft items like steering wheel locks and tire locks can help you save money. As a result, if your car has everything it could possibly need to keep thieves at bay, be sure to tell your insurer about it because it could save you money on your insurance rate.

Autonomous and driverless features

As manufacturers explore the technology, driverless cars, which were previously only seen in science fiction, are slowly becoming a reality.

It’s unclear how driverless cars will affect insurance premiums, but with human error accounting for roughly 90% of car accidents, the potential for crash reduction is significant.

It’s hoped that this will result in lower insurance premiums for both self-driving car owners and other road users. Before the technology becomes mainstream, insurers, manufacturers, and government officials will need to figure out who is responsible in the event of an accident.

However, you don’t have to wait for fully autonomous cars to benefit from the technology. Autonomous features such as parking assistance and automatic braking are now standard on more than half of new cars. According to Euro NCAP, autonomous braking systems have resulted in a 38 percent reduction in real-world rear-end collisions across Europe.

As a result, insurers are now offering lower premiums to reflect the cars’ lower crash risk. Some new policies aim to lower prices by leveraging the potential of driverless features like parking assist and ABS to reduce accidents. These new types of insurance policies also cover the driver in the event of software malfunctions or system hacking.

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Insurance for black boxes

Insurers can use black box technology (also known as telematics) to tailor premiums based on actual driving behavior. A small device or a mobile phone app is used by black box insurance to track how drivers use their cars.

In addition to traditional risk factors like age, car type, and driving experience, black box insurers consider factors like speed, braking, and driving times to better understand the drivers’ risk.

Black box insurance allows drivers to demonstrate to their insurer that they can drive safely, making it particularly attractive to those who are typically considered high-risk, such as young and inexperienced drivers.

Each black box policy, like all insurance policies, is unique and offers a unique way to save. Some insurers will offer black box policies at a lower starting rate than their standard policies, while others will track your driving habits and reward you for safe driving with quarterly or monthly refunds or rewards.

Dashboard cameras

Dashboard cameras, sometimes known as dash cams, are gaining in popularity as they become more readily available and affordable.

Dash cams are small cameras attached on the car’s dashboard or windscreen that record each travel, making it easier to retrace the events and conditions leading up to an accident. They can help to pinpoint the cause of an accident and speed up insurance claims by making it evident whether the motorist was at blame.

Some insurers grant an automatic reduction if you have an approved dash cam. The camera could also save you money in the long term by making it easier to prove when an accident was not your fault.

According to research, 27 percent of drivers have been unable to establish that they were not to blame for an accident. Unless you can prove you were not at fault you could lose your no claims discount and suffer a price jump at renewal time. Most insurers will now accept dash cam evidence as part of a claim, helping to prove innocence in these circumstances.

Extra security

Adding high-tech security measures to your car can also help to cut your insurance prices. As well as the danger of an accident, insurers calculate their prices on the chance of your automobile being stolen, vandalized or broken into. By implementing extra security elements, insurers will regard you at a lesser risk of claims of this type.

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A properly fitted alarm will assist to deter thieves and vandals, while installing a tracker in your car can also work as a deterrent while making it easier to recover your car if it is stolen. These security measures should help to convince your insurance that your automobile is a low risk, and it’s probable you will be offered cheaper premiums to reflect this.

Pay By the Mile

Vehicle owners can also purchase insurance on an as-needed basis thanks to technological advancements. Pay-per-mile policies are available from a number of companies. If you choose one of them, you must send a photo of the car’s odometer to the auto insurance company as instructed. If you’re like almost everyone else, you’ve got a smartphone practically attached to your hand. As a result, taking a picture and sending it shouldn’t be difficult.

Data Tracking Technology

People frequently believe that they are overpaying for auto insurance. This is due to the fact that the rates they pay are not always customized. Yes, factors such as a person’s gender, location, and car type influence how much they spend. Auto insurance rates, on the other hand, are largely based on statistical averages. As a result, good drivers sometimes pay the same amount for coverage as bad drivers.

Electronic Stability Control (ESC)

Electronic stability control, or ESC for short, is now considered industry standard. In 2012, all vehicles were equipped with this feature. It keeps track of the driver’s steering inputs and adjusts the brakes or engine power accordingly to keep the car on track. In addition, the ESC system is designed to prevent rollovers and sideways skidding. Electronic stability control, according to The Zebra, reduces the risk of a single-car accident by half.

The ESC system then reduces the risk of a fatal rollover by as much as 80%. But how much money can you save as a result of it? According to research, policyholders who have cars with electronic stability control can save $6.88 on their annual insurance.

What Kind of Technology Won’t Get You Discounts?

As previously stated, just because your vehicle has the most up-to-date technology doesn’t mean you’ll save money on insurance. There are numerous types of automotive technology that are not eligible for discounts. The following are some examples of items that typically do not make the cut in this regard:

  • Head-up display (HUD)
  • Seeing in the dark
  • Warning for lane departure
  • Assistance with parking
  • Blind-spot surveillance
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Furthermore, a collision preparation system does not always equate to insurance savings. When a driver is about to collide with another vehicle, these units use flashing lights, sounds, or vibrations to warn them. When shopping for a new vehicle, consumers should look for vehicles that have this feature. Despite this, insurers do not provide any discounts for it.

If you want to use technology to lower your insurance rates, a dash camera might not be the best option. This is due to the fact that no major insurers in the United States offer discounts for dash cams, according to Insurance Panda. However, this does not rule out the possibility of purchasing one. People are sometimes unable to prove who was at fault in an accident.

With a dash camera, you’ll have video evidence to back up your claim. You won’t be classified as at-fault in an accident, which could result in a significant increase in your insurance premiums. A single at-fault car accident can increase insurance rates by 50 to 80 percent. Install a dash cam, and hopefully it will reveal the true cause of a collision, preventing your insurance costs from skyrocketing. Just don’t expect to save money on your insurance as a result of it.

In Conclusion

Some vehicle technologies can help you save money on your auto insurance. However, the cost savings may not be noticeable. It depends on the type of technology and whether or not there is evidence that the feature keeps people safe. So, when getting quotes, make sure to tell the auto insurance company about your car’s high-tech features. You may be eligible for one or more discounts that will allow you to save money on your insurance premiums.

Three out of four motorists believe advanced car safety features are useful, according to a 2018 AAA survey. As a result, you’ll want them to come standard with your new vehicle. It’s just icing on the cake if you can save money on your auto insurance as well.

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