High-Tech on Cars Drives Up Insurance Rates
Back-up cameras, touch-screen controls, blind-spot monitoring, and other high-tech gadgets in cars could lead to higher auto insurance rates. “If they’re damaged, they’re much more expensive to repair,” said James Lynch, chief actuary for the Insurance Information Institute (III). Parts can be 130 percent higher, and labor can be 18 percent higher. Some of these devices can improve safety, and experts say drivers should consider how features will impact their premiums when buying new cars. Nationwide, the average cost of auto insurance has gone up from $915 in 2015 to $980 in 2016, according to the III. By 2017, though, the average cost of auto insurance was $1,060, and it is expected to climb to $1,150 in 2018.