New Technology Can Reduce Insurance Premiums

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Sponsored post: New Technology Can Reduce Insurance Premiums

UK Car insurance is a considerable part of the expense of owning a car. In some cases, third party fire and theft or comprehensive insurance premiums exceed the monthly loan payment on the vehicle. A number of strategies can help drivers lower their monthly payment. In today's insurance marketplace, old favourite cost cutters like defensive driving classes and intelligent vehicle selection have been joined by a new wave of innovative technological assistance. Installing one or more of these devices can result in a reduction in insurance premiums.

Theft prevention

Immobilisers are now old school technology, but insurers often give discounts for them. This category includes both the familiar steering wheel and brake locks and the newer chipped keys without which the vehicle will not start. A variation on the theme is a concealed kill switch which must be flipped before the vehicle can be operated.

Car alarms are also favourites with insurers, on the theory that their wailing attracts attention and may cause a thief to abandon an attempt to steal the car. They monitor not only the motion when the vehicle is entered but also the status of electronics like the ignition system, triggering when the ignition key turns.

Tracking devices help with the recovery of stolen vehicles. Some types involve broadcasting a radio chirp to alert police that a stolen vehicle is in the area, while others use GPS tracking.

Operator monitoring

Insurance companies also give discounts when drivers install devices to prove that their driving behaviour is less risky than the norm. These so-called black boxes monitor not only speed and the time of day that the vehicle is used but also things like acceleration and cornering. Fitting the box provides a record of good behaviour and may influence drivers to operate the vehicle in a less risky way. In any case, insurers offer substantial discounts to careful, capable drivers who have the readout from a black box to prove that they drive sensibly.


Driving aids

Back-up cameras actually help drivers avoid accidents by giving a good view of the area behind a backing car. As this makes it far less likely that the driver will reverse into something and incur a claim, it decreases the insurer's risk, and the vehicle owner's insurance cost fall.

Automatic braking systems can also earn discounts from insurers, although their primary effect is not to prevent accidents entirely but to decrease their severity. When the system's proximity sensors detect an imminent impact, they engage the brakes to reduce the vehicle's speed. Less speed means a less forceful collision, therefore less damage and likely a smaller payout for the insurer.

Reducing the cost of car insurance is one very good way of lowering overall driving expenses. By exploiting new and existing technologies to prevent theft and to drive more safely, and by fitting a monitor to prove that the vehicle is operated sensibly, owners can reduce their insurers' risks and therefore their own premiums. This makes these technologies a good deal for everyone.

This post was sponsored by the Green Insurance Company. Image © Volvo.