Auto insurance companies are starting to charge their customers more and the reason, they claim, is all the new tech features their cars are laden with.
State Farm, the largest auto insurer in the U.S., for example raised its rates in Illinois by 5.9 percent, effective October 31, something that affects 1 out of 3 drivers in the state. This is the second increase this year, after a 2.7 percent raise in February, and it reflects what they expect to pay in claims.
“Cars are just getting more expensive to repair, due to the technology”, company spokeswoman Missy Dundov told The Chicago Tribune. “We’ve seen a huge increase in what it costs to pay out our claims”.
State Farm is not alone in following this policy: Geico also plans to raise its insurance rates by an average of 3.5 percent, while Allstate has already implemented a 6.9 percent increase since June. All blame the latest tech features new cars come equipped with for that.
“Now we’re not just replacing a bumper for a fender-bender, we’re replacing the cameras or the sensors in that bumper”, said Allstate’s Meghan Sporleder. “We’re seeing newer, more sophisticated models costing much more to repair, especially with some of the more advanced safety features.”
Both State Farm and Allstate were quick to point out that they are in no way discouraging new car buyers for opting for the latest safety equipment. “We absolutely support technology that saves lives and minimizes injuries”, said Sporleder, “but that comes at an increased cost”.
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