Insurers Caution Consumers Regarding Advanced Safety Features
July 26, 2019—Insurance companies are waving a caution flag at consumers eyeing discounts for buying collision-avoiding brakes or automated cruise control, reported Insurance Journal.
According to insurer Swiss Re AG, and mapping company HERE, ADAS has the potential to reduce motor accident frequencies by up to 25 percent, cutting global insurance premiums for fully ADAS-equipped cars by $20 billion by 2020.
But, U.S. insurers said they do not have sufficient data to validate auto industry promises of safety benefits from automated driving systems.
“We’re not going to go against the data and create any type of false discounts for the purposes of marketing at this point. We just want to make sure the rate is reflective of the risk that it brings,” said Steve Armstrong, a vice president of Allstate Corp.’s pricing department, one of America’s largest insurers.
Insurance rates will reflect benefits and costs of modern auto technology in the next five years, but will not necessarily be presented as discounts, according to the report.