Safer Cars Are Starting To Cost More To Insure

April 11, 2017 in Daily Bulletin

All the additional safety features cars are coming with are perversely making them more expensive to insure wrote Christina Rogers and Leslie Scism:

  • Accident prevention systems require advanced sensors, microprocessors and other hardware. If an accident takes place, they’re expensive to replace.
  • These sensors are often located in places like the bumper or on external mirrors – areas most likely to get damaged in an accident.
  • For example: it costs $166 to replace a normal side mirror on a 2015 Mercedes-Benz ML350, but $925 to replace one with anti-collision technology.
  • Insurers are passing this cost on. When one buyer replaced a 2015 model of a car with a 2017 version he saw his insurance quote increase by 20%.

Read more on The Wall Street Journal

Via: Marginal Revolution