Modern vehicles are increasingly equipped with advanced safety technologies.
Features such as lane departure warnings, forward collision mitigation, and blind spot detection are becoming standard, and automakers have pledged to make automated emergency braking a mandatory feature in all new vehicles by 2029.
From a safety standpoint, this is a significant advancement. Studies indicate that advanced driver assistance systems (ADAS) can reduce the likelihood of crashes by up to 50 percent.
However, while these technologies enhance safety, they also contribute to higher repair costs, which can lead to more expensive and prolonged insurance claims.
Insurance industry professionals cite vehicle complexity as a driving factor behind rising insurance premiums. Understanding how the technology in your current or prospective vehicle may impact insurance costs is essential.
To explore the connection between ADAS and auto insurance rates, Bankrate consulted experts in both the auto safety and insurance sectors.
Our findings suggest that while ADAS may increase insurance costs for some drivers, there is still an opportunity to manage this trend without compromising on safety.
Understanding ADAS
Advanced driver assistance systems (ADAS) are designed to aid drivers in vehicle operation, minimizing human error through human-machine interaction. Some common ADAS features found in modern vehicles include:
- Forward collision warnings
- Automated emergency braking
- Lane departure warnings or prevention
- Parking sensors
- Blind spot monitoring
These systems are now standard or widely available as optional features in most new vehicles sold in the U.S. By 2029, automated front emergency braking will be a legally required feature in all new models.
It’s important to note that driver assistance systems differ from full automation.
These crash avoidance technologies do not replace human drivers; instead, they provide alerts or initiate automatic braking and steering under specific conditions.
Do ADAS Features Increase Insurance Costs?
Advanced safety technology improves driver safety, but it also raises the cost of vehicle repairs.
With car insurance premiums rising in recent years, any factor that increases insurers’ expenses may ultimately affect what drivers pay for coverage.
They provided insight into how ADAS influences insurance costs and claims.
Also Read: Top Car-Monitoring Cams with Advanced Features & High Resolution
ADAS May Lead to Higher Insurance Claims
ADAS requires significant investment in technology from vehicle manufacturers and repair shops, an expense that may be transferred to insurers through higher claims.
Tony Cotto explains that the cameras and sensors integral to ADAS are typically positioned on the vehicle’s exterior. As a result, these delicate components are vulnerable in an accident, and their repair process is more complex.
“You can’t just replace the camera,” Cotto says. “You have to calibrate it. In order to calibrate it correctly, the mechanic has to spend additional time on that repair and the calibration, and they may need additional equipment, which shops have to invest in.”
When a claim is filed, the costs of components, labor, specialized equipment, and the time required for accurate calibration add up.
A study by the American Automobile Association (AAA) found that ADAS repairs account for an average of 37.6 percent of the total repair costs in four common collision scenarios.
In minor rear-end collisions, ADAS contributes to 40.9 percent of the total repair expenses.Cotto also points out that incorrect calibration can lead to malfunctioning ADAS features, increasing the risk of future accidents.
ADAS May Reduce Minor Insurance Claims
While ADAS increases repair costs after an accident, it also significantly reduces the likelihood of crashes. Data suggests that these systems are effective in preventing accidents.
Automatic emergency braking (AEB), which is now required in new vehicles, has shown particularly strong results in reducing collisions. Jessica Cicchino highlights how AEB has led to fewer rear-end crashes, which tend to involve lower-value insurance claims.
While ADAS adoption continues to grow, both Cotto and Cicchino acknowledge that vehicle owners may still face high repair costs if their car sustains damage.
Experts suggest that the wider implementation of ADAS features will help balance the benefits with cost concerns.
IIHS research shows that 90 percent of drivers with lane departure warning and prevention systems now keep them activated, a significant increase from just 51 percent eight years ago.
Keeping these systems operational maximizes safety benefits and ensures drivers aren’t paying for technology they don’t use.Still, there is ongoing work needed to manage ADAS-related costs.
How Do Insurance Companies View ADAS?
While many insurers provide discounts for safety features, they may not directly lower premiums for vehicles with ADAS.
Insurance companies vary in how they assess vehicle safety technology. While some may offer lower premiums for cars equipped with ADAS, others may focus on broader safety records based on crash statistics.
Also Read: Reasons Why Uninsured Driving Is Becoming Common Among Americans
For example, Geico provides discounts for vehicles with airbags, daytime running lights, and anti-lock brakes but does not advertise specific savings for ADAS-equipped models.
Cotto suggests working with an insurance agent to ensure all applicable safety features are considered when determining rates.
Three Ways to Keep Insurance Costs Low with ADAS
Although ADAS can lower accident risks, its repair costs can be a financial concern. Here are three ways to mitigate insurance expenses while benefiting from ADAS:
- Understand Your Vehicle’s Safety Features: Familiarizing yourself with ADAS ensures you use these systems effectively, maximizing their safety benefits.
- Choose a Trusted Mechanic: After an accident, ensure ADAS repairs and calibrations are performed correctly by a reputable repair shop.
- Work with an Insurance Agent: Since not all insurers offer the same discounts, consulting an agent may help you find the best possible rate for your ADAS-equipped vehicle.
By staying informed and proactive, drivers can harness the benefits of ADAS while managing associated costs.
