Most of the new vehicles that are on the market today come equipped with a wide range of technological features that are designed to make them safer than ever. This includes everything from backup cameras that allow you to see what’s behind you when you put your vehicle in reverse, to blind-spot monitoring that keeps a close eye on the areas you can’t see when driving. There’s no doubt that these features are helping reduce the number of accidents we find ourselves in, and in some cases, they’re even saving lives.
At the same time, however, did you know that these features can also drive your auto insurance rates up and force you to pay more out of pocket?
The problem with car technology is that it isn’t cheap. Those cameras that are installed all over your vehicle? They cost a lot of money, and aside from paying for the feature in the first place, keep in mind that you will also have to pay extra to have them insured by your auto insurance company. According to a recent USA Today report, which cited data from Liberty Mutual Insurance, it costs about $3,550 in parts and labor to fix the bumper on a 2016 entry-level luxury car today, compared to the roughly $1,845 cost to fix the bumper on a similar 2014 car. That’s because sensors are installed on many newer bumpers, which need to be repaired when the bumper is damaged.
Because of this, you should take the time to weigh your options before you commit to buying a car, truck, or SUV that comes with a lot of fancy bells and whistles.
While many of the latest forms of technology can provide extra protection and help you avoid accidents, you may also have to pay a premium to get them—and it seems like this could only increase. Car insurances rates have gone up in recent years, and they’re expected to continue to climb moving forward as even more technological advancements are incorporated into vehicles. It could make you think twice about the features you want in your car, and it could also make you think twice about how you care for your vehicle.
Of course, technology isn’t the only thing that is making car insurance more costly, but it’s safe to say that it’s playing a large role in it and causing many drivers to reconsider what they purchase.