The complex world of car insurance in the world: US trends reflected on antipodean landscapes
Is software making car repairs more expensive?
The Zebra – Car insurance rates across the U.S. are higher than ever. “The Zebra reveals the latest data, trends impacting rates, and which drivers pay the most, based on an analysis of 73 million rates...Since 2011, rates have skyrocketed 29.6% nationally, though the impacts differ across the U.S. Seven states have seen small rate decreases since 2011, while 44 states and Washington D.C. experienced increases (up to 86%)…Via Wired– “…That’s because the sensors that power those systems make cars much more expensive to fix when they do crash. Dent a steel bumper, and a few hammer blows gets you back on the road. Smash one on a new car, and it could mean replacing a radar, a camera, and ultrasonic sensors, then calibrating them so they work properly. Replacing a cracked windshield now comes with the extra cost of having someone readjust any cameras that look through the glass. While some studies have shown the effectiveness of emergency braking, insurance companies haven’t yet seen enough evidence to justify a break in rates for most of these features. That’s not to say lane keeping, parking assist, and the rest don’t work. They’re all relatively new, and the actuaries aren’t yet confident that their benefits outweigh the extra costs they incur to repair. Complicating the picture is the fact that each automaker offers its own version of each feature, and that drivers may not keep the systems engaged…”