4 Reasons Why Smart Cars Don’t Save Us on Car Insurance

4 Reasons Why Smart Cars Don’t Save Us on Car Insurance





New technology makes some cars smarter than their drivers: Automatic braking systems slow or stop cars to prevent collisions. Lane-departure warning features alert drivers with sounds or vibrations when their cars drift across lane markings. Self-parking systems can expertly back vehicles into tight spaces without drivers touching their steering wheels. With more vehicles hitting the road with these safety features, we would expect the amount of accidents to decrease resulting in lower insurance premiums, right? But the cost of accidents and auto insurance have risen in recent years. Federal Consumer Price Index data shows car insurance prices jumped 7.9% in 2017 and 7% in 2016, the biggest annual increases since 2002.


  1.  Older cars staying on roadways longer. Making it harder for the safety strides to make a dent.

  2. Folks are driving more. Drivers logged more than 3.2 trillion miles on U.S. roads in 2016, the fifth straight year that U.S. mileage increased, according to the Federal Highway Administration. Miles driven from January to September 2017 were up 1.3% compared with the same period in 2016.

  3. Accident costs are going up. Insurers’ costs to pay and administer claims went up 11% or more per insured vehicle in the past few years.  Technology is partly to blame for the higher costs. More than 82% compared to vehicles with less technology.

  4. Few insurance discounts for newest safety features Most car insurers don’t yet offer discounts for the latest features, such as adaptive cruise control, automatic emergency braking or lane-departure warning system

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