The Impact of Vehicle Safety Features on Car Insurance Rates

Vehicle safety features are devices or systems that can help prevent or reduce the risk of accidents and injuries involving vehicles. They can be classified into two categories: active safety features and passive safety features. Active safety features are those that can help avoid or mitigate collisions by alerting or assisting the driver, such as anti-lock brakes, lane departure warning, blind spot detection, etc. Passive safety features are those that can help protect the occupants in case of a collision, such as airbags, seat belts, crumple zones, etc.

Vehicle safety features are becoming more common and advanced in modern vehicles. According to a report by the Insurance Institute for Highway Safety, 99% of new vehicles sold in the US in 2019 had front airbags, 98% had anti-lock brakes, 96% had electronic stability control, 92% had rearview cameras, 86% had side airbags, and 71% had forward collision warning. Moreover, according to a report by the National Highway Traffic Safety Administration, vehicle safety features have saved more than 600,000 lives and prevented more than 50 million injuries in the US from 1960 to 2012.

If you are a vehicle owner or a potential buyer, you might be wondering how vehicle safety features affect your car insurance rates and how to take advantage of them. In this article, we will inform you about the impact of vehicle safety features on car insurance rates and how to take advantage of them in four aspects: lower risk of accidents and injuries, higher value and cost of vehicles, different coverage options and requirements, and various discounts and incentives.

Impact 1: Lower Risk of Accidents and Injuries

One of the main impacts of vehicle safety features on car insurance rates is that they can lower the risk of accidents and injuries by preventing or mitigating collisions. Vehicle safety features can help avoid or reduce crashes by alerting or assisting the driver to avoid potential hazards or correct errors, such as braking, steering, changing lanes, etc. They can also help reduce the impact or severity of crashes by protecting the occupants from injury or death, such as cushioning, restraining, absorbing, etc.

Vehicle safety features can have significant benefits in reducing accidents and injuries. According to a study by the Insurance Institute for Highway Safety, vehicle safety features can reduce the fatal crash rate by up to 56% for passenger cars and up to 32% for SUVs. Moreover, according to a study by the National Highway Traffic Safety Administration, vehicle safety features can prevent or mitigate more than 2.7 million injuries and more than 37,000 deaths per year in the US.

Lower risk of accidents and injuries can lower car insurance rates by reducing the frequency and severity of claims. Claims are requests for compensation from your insurance company for damages or losses caused by accidents or incidents involving your vehicle. Claims can be costly for both you and your insurance company, as they involve paying for repairs, medical bills, liability, etc. The more claims you have, the higher your car insurance rates will be, as your insurance company will consider you a high-risk driver and charge you more for your premium. The fewer claims you have, the lower your car insurance rates will be, as your insurance company will consider you a low-risk driver and charge you less for your premium.

Impact 2: Higher Value and Cost of Vehicles

Another impact of vehicle safety features on car insurance rates is that they can increase the value and cost of vehicles by adding more technology and equipment to them. Vehicle safety features can enhance the performance and functionality of vehicles by improving their handling, stability, visibility, etc. They can also increase the appeal and demand of vehicles by attracting more buyers and retaining more value.

Vehicle safety features can add significantly to the purchase price and repair cost of vehicles. According to a report by AAA, the average cost of adding advanced driver assistance systems (ADAS), such as automatic emergency braking, lane keeping assist, blind spot monitoring, etc., to a new vehicle was $3,000 in 2018. Moreover, according to a report by CarMD, the average cost of repairing ADAS components was $1,845 in 2019.

Higher value and cost of vehicles can increase car insurance rates by increasing the replacement cost and claim cost of vehicles. Replacement cost is the amount of money it would take to replace your vehicle with a similar one in case of a total loss. Claim cost is the amount of money it would take to repair your vehicle in case of damage. The higher the replacement cost and claim cost of your vehicle, the higher your car insurance rates will be, as your insurance company will have to pay more in case of a claim. The lower the replacement cost and claim cost of your vehicle, the lower your car insurance rates will be, as your insurance company will have to pay less in case of a claim.

Impact 3: Different Coverage Options and Requirements

Another impact of vehicle safety features on car insurance rates is that they can affect the coverage options and requirements for car insurance by influencing the type and amount of protection needed for vehicles. Coverage options are the types and levels of protection that you can choose for your car insurance policy, such as liability, collision, comprehensive, etc. Coverage requirements are the minimum amounts and types of protection that you must have for your car insurance policy, according to state laws, lender rules, or personal preferences.

Vehicle safety features can change the coverage options and requirements for car insurance by increasing or decreasing the need for certain types of protection. For example:

• Liability coverage: Liability coverage is the type of coverage that pays for the damages and injuries you cause to others in an accident that is your fault. It is required by law in most states and has two components: bodily injury liability and property damage liability. Bodily injury liability pays for the medical expenses and lost wages of the other driver and passengers in an accident that is your fault. Property damage liability pays for the repair or replacement of the other driver’s vehicle and other property in an accident that is your fault. Vehicle safety features can reduce the need for liability coverage by lowering the risk of causing accidents or injuries to others. However, they can also increase the need for liability coverage by increasing the potential damage or injury to others in case of an accident, especially if the other vehicle does not have similar safety features.
• Collision coverage: Collision coverage is the type of coverage that pays for the repair or replacement of your own vehicle in an accident that involves another vehicle or object, regardless of who is at fault. It is optional in most states, but may be required by your lender if you have a loan or lease on your vehicle. Vehicle safety features can reduce the need for collision coverage by lowering the risk of getting into accidents or damaging your own vehicle. However, they can also increase the need for collision coverage by increasing the value and cost of your own vehicle in case of an accident, especially if your vehicle has expensive or specialized parts or systems.
• Comprehensive coverage: Comprehensive coverage is the type of coverage that pays for the repair or replacement of your own vehicle in an event that is not a collision, such as fire, theft, vandalism, hail, flood, animal damage, etc. It is also optional in most states, but may be required by your lender if you have a loan or lease on your vehicle. Vehicle safety features can reduce the need for comprehensive coverage by lowering the risk of losing or damaging your own vehicle due to non-collision events. However, they can also increase the need for comprehensive coverage by increasing the value and cost of your own vehicle in case of a non-collision event, especially if your vehicle has expensive or specialized parts or systems.

You should weigh the pros and cons of each coverage option and requirement and choose what suits your budget and risk tolerance. You should also check your state’s minimum coverage requirements and make sure you meet them. You should also check your lender’s rules and make sure you comply with them. You should also consider your personal preferences and make sure you are comfortable with them.

Impact 4: Various Discounts and Incentives

Another impact of vehicle safety features on car insurance rates is that they can qualify for various discounts and incentives from car insurance providers by demonstrating safer and more responsible driving behavior. Discounts and incentives are reductions or rewards that can help you save money on your car insurance by meeting certain criteria or conditions set by your provider. Some of the common discounts and incentives offered by car insurance providers for vehicle safety features are:

• Safety feature discount: A safety feature discount is a type of discount that reduces your car insurance premium if your vehicle has certain safety features that can prevent or reduce accidents or injuries, such as airbags, anti-lock brakes, lane departure warning, blind spot detection, etc. The amount and availability of this discount vary depending on the provider and the type and number of safety features. According to The Zebra, the average savings from this discount was $269 per year in 2020.
• Safe driver discount: A safe driver discount is a type of discount that reduces your car insurance premium if you have a clean driving record with no accidents or violations for a certain period of time (usually three years or more). This discount shows that you are a safe and reliable driver who deserves lower rates. The amount and availability of this discount vary depending on the provider and the length and quality of your driving record. According to The Zebra, the average savings from this discount was $612 per year in 2020.
• Usage-based program: A usage-based program is a type of program that tracks your driving habits through a device or an app and adjusts your car insurance premium based on your actual driving behavior, such as mileage, speed, braking, acceleration, etc. This program rewards you for driving less or safer by lowering your rates or giving you credits or refunds. The amount and availability of this program vary depending on the provider and the type and quality of your driving behavior. According to The Zebra, the average savings from this program was $145 per year in 2020.

By taking advantage of these discounts and incentives, you can lower your car insurance rates by reducing your base rate or per-mile rate. You should check with your provider what discounts and incentives they offer and how to qualify and apply for them. You should also review your policy periodically and update it with any changes that could affect your eligibility for discounts and incentives.

Conclusion

Vehicle safety features are devices or systems that can help prevent or reduce accidents and injuries involving vehicles. They can have a significant impact on car insurance rates by affecting various aspects, such as lower risk of accidents and injuries, higher value and cost of vehicles, different coverage options and requirements, and various discounts and incentives. They can offer some advantages and disadvantages, such as lower premiums, higher purchase price, additional coverage, specialized claims, etc.

If you are a vehicle owner or a potential buyer, you should compare quotes and policies from different providers and find the best car insurance for your vehicle. You might be surprised by how much value you can get from vehicle safety features on car insurance rates.

We hope you found this article helpful and informative. If you have any questions or comments, please feel free to contact us. We would love to hear from you. Thank you for reading and happy driving!