Why Your High-Tech Car Costs More To Insure

By on June 13, 2017

You never know the time or the hour when disaster might knock on your door. It is, therefore, important to insure all your property including any automobiles in your possession so as to protect yourself from complete loss. Insurance costs vary from one company to the other and depending on the type of insurance package you have chosen. Also, Insurance costs vary depending on the kind of vehicle in your ownership. For instance, a new vehicle out of the production line has less accident protection features as compared to a custom built automobile.

Why Your High-Tech Car Costs More To Insure

In the latter case, the cost of an insurance premium is more likely to go up. Insurance costs go up since the additional components on your high-tech car increase the value of your vehicle. When the percentage of coverage undergoes calculation against your automobile’s value, then the costs shoot up. Besides, a high-tech car brings more risks regarding compensation. Thus, the insurance company is compelled to charge more so as to cover any damages whenever disaster strikes.

Besides, the additional equipment is found in highly delicate regions on the vehicle’s body thus increasing their risk of potential damage. To this end, it costs more to get insurance covering such a car. Since 2016, more cars are coming out of the production line fitted with additional accident prevention features. When you try to compare the repair costs of simple components in new models and those of older models, you find that the prices have more than doubled.

Another component highly common in modern automobiles is the HD video camera that captures footage wherever the car goes. When this element gets damaged, it costs the insurer more money to repair or replace it and therefore, insurance companies opt to charge high-tech automobile owners more when it comes to their insurance premiums.

At times, you might be very unlucky as a vehicle owner to land into the hands of unscrupulous insurance dealers. Since the world is full of quacks, there is a high chance that you might meet people in the insurance businesses who sell customers full covers at highly escalated prices. Thus, this might be one of the reasons as to why some vehicle owners today complain of very high charges when it comes to their insurance plans. High tech automobiles also have components like a reliable braking system that prevents the vehicle to skid or veer off the road in case of an emergency stop.

As much as the price for premium insurance keeps going up, it is important that you as a car owner make sure that you are always insured at all times. Whenever disaster strikes, it is the insurance company that will come knocking at your door, and they might either provide you with a new vehicle or choose to repair the damaged one on your behalf. In so doing, you get to avoid a lot of strain and stress since you would have otherwise dug deep into your pockets. Most of us don’t have the cash just lying around to spring for repairs on our own car, let alone someone else’s, so unless you’re a super high-roller with tons of cash on hand, you should make sure you’re insured. As new models come to a realization, the cost of an insurance cover will keep going up, primarily because even the technology of the current safety features will improve.

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