Smart connected cars could be pushing up insurance premiums | Smart Highways Magazine: Industry News

Smart connected cars could be pushing up insurance premiums

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The industry has warned that smart connected cars could be pushing up insurance premiums. 

The cost of fixing sophisticated modern cars with hi-tech driving assistance and expensive sensors has reached record levels, the Association of British Insurers (ABI) said.

The Telegraph reports that car repair costs during the first quarter of this year reached £1.2 billion, the highest level since the organisation started collecting the data in 2013.

In its latest report about car insurance costs, the AA told The Telegraph that insurers were ‘under pressure from increasing costs of crash repairs due to the growing complexity of modern cars, contributing to the new upturn in premiums.’

Paul Stacy, ABI’s director of automotive in Europe, said insurers were also finding that they were unable to refer to historical data to work out the cost of insuring the new cars.

According to The Telegraph, consumers are also buying increasingly expensive models because of the growing popularity of leasing agreements.

Mr Stacy said this also meant that minor problems such as scruffs which a consumer would not otherwise have claimed for were more likely to be disputed be dealers, causing insurers to have to pay out for repairs.

 
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