Motorists around the world are in the middle of a technological renaissance focused on keeping drivers safe while they cruise the open road. But safer cars with futuristic features means more than fewer accidents and injuries behind the wheel: It can also translate into cheaper car insurance. Producers rate applicants based on their accident risk, so if people are less likely to file a claim because of highly regulated safety features, policy prices might be lower.

State and federal government has made it a priority to ensure that all vehicle owners are as safe as possible while driving. To do this, legislation has been passed that requires all new motor vehicles to be equipped with certain safety features. For example, as of Sept. 1, 2011, all new light cars must be equipped with electronic stability controls (ESC). This feature detects and reduces loss of traction to help prevent drivers from losing control of their vehicles.

Once all light vehicles on the road are equipped with ESC systems, the National Highway Traffic Safety Administration estimates (based on extensive research) that between 156,000 and 238,000 automobile accident-related injuries could be prevented annually. In addition to having ESC systems, many modern cars also contain other advanced safety features, including lane-departure warnings, forward-collision warning, advanced air-bag systems, and many other features that can significantly reduce accident risk.

New Technology Translates into Lower Insurance Rates

A vehicle owner who is surrounded by advanced safety features is better equipped to avoid car accidents than a low-tech driver. This increased level of protection can often lead to significant auto insurance saving. Often producers will give special discounts to people who insure automobiles that are equipped with technology designed to reduce collision probability and accident damage. Cars and drivers that are well protected often translates into fewer or smaller claims that companies are obligated to pay, which are savings that producers are happy to pass on to policyholders. These technologies, however, have to be proved to statistically lower crash risks before warranting a discount.

Coverage costs may also be indirectly affected by modern safety equipment. If vehicle owners are able to avoid accidents and claims, they are also likely to maintain a clean driving record. Because policy prices are largely based on claims history, a driver who avoids accidents and moving violations is more likely to make an auto insurance quote comparison that produces inexpensive results.

Before taking off to buy an expensive new car loaded with exciting equipment, drivers should check with their insurer to see how much a specific vehicle will cost to insure. Buying a new automobile almost always results in higher coverage costs because of their increased value. Luckily, as many new safety features become standard in the marketplace, it will become more and more common to find cheaper (or slightly used) automobiles that are adequately equipped to keep drivers safe on the open road.