How Technology is Making Car Insurance Cheaper

Auto insurance is one of the most expensive, and regular costs, of owning a car. While having insurance is a necessary aspect of owning a vehicle, spending a lot of money is not. It is well-known that advances in technology have helped to improve every aspect of life. But what may not be known, is the fact that some of these advances can be used to help lower the costs of car insurance. Here is a list of six innovations that will help you decrease the cost of your premiums.

Tracking Devices

Installing a car alarm does not eliminate the chances of car theft. However, installing a tracking device does insure a quick recovery should a theft happen. These systems also act as a deterrent to would-be thieves. Some tracking devices use a low-frequency transceiver that sends signals to police once the car is identified as stolen. Other systems use GPS tracking to recover the car. LoJack is one of several companies that provides a tracking and recovery system. Because of the deterrent factor and high-recovery rates, insurance companies provide discounts to customers with tracking devices. Depending on the insurance company and the state of the insured, the discount can range from 15 to 20 percent.

Driving Recording Systems

Insurers are starting to use monitoring devices to determine a driver’s risk level. These devices track how fast a person drives, when they drive, how the drive accelerates and other criteria. Drivers that display a low-risk, driving behavior tend to get discounted insurance rates. The monitors also have an impact on the drivers who install the boxes. Driver’s with boxes tend to drive in a more careful manner. Depending on the box, drivers may be alerted by chimes if they start to display unsafe driving habits.

Tire Pressure Monitors

Tire pressure monitoring systems constantly check the tire’s pressure and alerts the driver of any irregularities in the tire pressure. The systems consist of three components, a receiver unit, pressure sensors and transmitters. Each tire on the vehicle is fitted with a sensor that reports the tire’s pressure to the central receiver. The central receiver sends a message to the driver if the sensors detect that the tire is below or above its pressure threshold. Under-inflated tires pose several safety threats that include, poor stability, risk of overheating, tire failure, and increased breaking distances.

Stop Assistance

Stop assistance technology uses a sensor that alerts the car if there is the possibility of impact or if the car is following too close in traffic. Volvo was the first to use this technology. In recent years, other car manufacturers have seen the benefits of using this system and are adding the safety feature to their cars. While stop assistance can help to prevent accidents, it is really intended to decrease the severity of any impact. By decreasing the severity of an impact, less damage is done to the car and the insurance company pays out less money.

Blind Spot Alert Systems

Every driver knows that their vehicle has an area of low visibility.This area, blind spot, prevents the driver from being able to adequately see vehicles that are in nearby lanes. Blind spots are a big cause of accidents. Vehicles that have blind spot alert systems have sensors that inform the driver of any obstruction in an adjacent lane. If the another vehicle is present, an alarm will ring to prevent the driver from changing lanes. The systems decrease the chances of accidents and help keep insurance premiums low.

Rear-View Cameras

Many car accidents involve backing into other objects and even people. The addition of rear-view cameras helps the driver to see what is behind them. The technology was initially introduced as a way to help drivers park their cars. The camera’s sensors now have a distance guide and beep to alert drivers when they are approaching another object.

Technological advances provide an added level of convenience to everyday life. Many people do not realize that when technology is combined with automobiles, some insurance companies will provide a discount on their premiums. Insurance companies reward the customers that use devices that help increase driver safety. The previously mentioned automotive advances are just a few that will lower insurance premiums up to 20 percent.

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