New Tech in Vehicles Results in Higher Auto Insurance Rates

Cars have changed a lot in recent decades. Today, many are equipped with tons of technology that control many different aspects of car operation. All of this advanced technology can be more prone to problems, and those who buy new cars and have issues should contact an Orange County lemon law attorney to get help understanding the options available to them for pursuing a legal remedy.

New car technologies are not only causing more vehicle owners to have to deal with malfunctioning parts. According to ABC, technologies are also leading to higher auto insurance rates.

New Car Technologies Lead to Higher Car Insurance Rates

According to ABC, the California Department of Insurance has pointed out that insurance premiums are rising for vehicle owners throughout the state largely thanks to the fact that there is so much safety technology in vehicles.

The California Department of Insurance issued this warning because they've received information from automobile insurers regarding rising premiums. California law mandates that insurers get permission from the Department of Insurance before raising rates, and insurers have to provide historical loss data to justify premium increases. Insurers have been showing proof that in-vehicle technology is driving up the cost of claims.

Cars frequently come equipped with sensors, digital displays, cameras, air bags, computers, Wi-Fi, and more. All of these different in-vehicle technologies aim to help prevent crashes from occurring and reduce the risk of injury when accidents happen – but there is a big expense associated with repairing the technology when things go wrong.

A bumper is a good example of this phenomenon. While traditionally bumpers were inexpensive to replace and a fender bender would lead to just a few hundred dollars in damage, now bumpers may be equipped with technologies such as rear-view cameras or back-up sensors that are able to detect proximity to other vehicles.  The same fender bender that used to cost just a few hundred dollars due to bumper damage may not cost $2,000 or more to make repairs to the bumper with the advanced tech built into it.

Safety systems in vehicles also increase the likelihood that a victim will survive a car accident – even if seriously injured. This drives up the costs for insurance companies who end up paying more money in medical bills or liability benefits to people who are hurt but not killed in crashes and who need costly medical care or experience a decreased quality of life due to permanent injuries.

Unfortunately, in car technologies also make crashes more likely to occur in many circumstances, even with advanced tools designed to prevent accidents. That's because many of these technologies such as built in infotainment systems tend to cause driver distraction. Distraction-related accidents have driven up the rate of collisions in recent years, even as other safety technologies such as air bags and crash avoidance systems have made it less likely for people to die in accidents.

An Orange County lemon law attorney can provide help to those whose in-vehicle technologies malfunction and cause problems with new car operation, so contact an attorney today to learn more.