COVID-19 Updates »

New Car Tech Can Lead to Higher Insurance Costs

Share This

Buying a new car can be exciting! There can be a lot of decisions to make about what kind of car you want to get, whether to go new or used, if you want to get a little hybrid or a big SUV to haul around your family. For people who are into tech and want your front dash to look more like a space ship, you are looking for the vehicle that crams as many extra features possible into the car for the lowest price. Bluetooth, GPS, and cameras are becoming standard in cars, but how does that effect the price of your car insurance?

The newer cars that people are interested in buying come equipped with some pretty cool technology that can help to keep not only the driver of the car safer, but also those who are on the road with them. These new innovations include cameras for backing, sensors to alert drivers that someone is in their blind spots, and crumple zones among many other things. What a lot of people don’t understand is that a new car costs more to insure not only because the replacement costs are more to replace a new car, but because the repair costs on all of that new tech is something companies have to take into consideration. This is why the cost of car insurance has been on the rise as well.

Here is an infographic from Safeco Insurance that compares some of these costs.