Do Vehicle Safety Features Impact Insurance Rates?

Vehicle safety ratings are determined for vehicles from all car manufacturers. The Insurance Institute for Highway Safety (IIHS) and the National Highway Traffic Safety Administration (NHTSA) are two of the organizations that provide safety ratings for all types of vehicles on the road. These organizations run tests to determine how vehicles perform in a crash and measure how likely the risk of injury is to the passengers in a vehicle compared to other vehicles in the same category, such as small cars, midsize cars, midsize luxury cars, large cars, large luxury cars, SUVs and trucks. The vehicles with the lowest injury risk in each class have the best safety ratings. These vehicles are tested for frontal protection to determine how the car will perform in a head-on collision, side crash performance, and roof strength, among other things.

Because auto insurance companies look to minimize the risk of large claims, especially those in which people are injured, owning a vehicle with a great safety rating may reduce your car insurance premiums. Unfortunately, this isn't a guarantee because though a vehicle may have advanced safety features and a great safety rating, the cost of a vehicle, your driving record, and other rating factors also play a significant role in determining your policy premium.

What are the Basic Safety Features of a Vehicle?

Suppose your vehicle has basic safety features such as airbags, anti-lock brakes, seat belts, daytime running lights, and anti-theft devices. In that case, your car insurance rates will reflect this when your insurance company runs the vehicle identification number for your car. These features are now standard on most vehicles, but others have many added safety features that can reduce insurance costs.

Can Added Safety Features Reduce My Car Insurance Rate?

Aside from the safety rating assigned to your vehicle, there are other safety features that your car may have that may further reduce your insurance rates. These include advanced driver assistance systems, automatic emergency braking, a lane departure warning system, blind spot monitoring, rear automatic braking, blind spot intervention, and a forward collision warning system, among other things. Not all insurance companies give credit for these safety technology features. Be sure to inform your insurance company or insurance agent if your vehicle has any of these safety features to ensure you get the best possible rate for your car insurance.

Unfortunately, advanced safety features like those listed above can raise repair costs in a car accident because the systems themselves may have to be repaired after an accident, in addition to the body of the car itself. Because of this, you may see a higher car insurance rate for a vehicle with these features because they are more expensive to fix than vehicles without such features.