Cars are getting smarter. Features like collision mitigation and blind spot monitoring have been shown to help prevent accidents and save lives. But these features cost a lot to repair even in a minor collision, and the insurance companies are reacting.
The Chicago Tribune recently reported on three major insurance companies increasing rates in the state of Illinois by an average of 5.9 percent. The last increase even close to this big happened in 2003, when that state’s drivers were bumped by 14 percent, the story says.
One of the primary factors for the rate hike is the replacement cost for the technology when smart vehicles are involved in a collision. Via Missy Dundov of State Farm, the nation’s largest auto insurer: