The Insurance Institute for Highway Safety (IIHS), a research-based organization dedicated to advancing automobile safety standards, has released findings indicating that a new technology could be instrumental in reducing the severity of auto collisions – an encouraging proposition for brokers hoping to reduce policyholder premiums.
The test involved collision-avoidance systems on such luxury vehicles as the BMW X3, Mercedes-Benz C-Class and the Acura MDX, according to CNBC. IIHS set out to examine whether the cars’ collision-avoidance systems, in this case an alert to brake or an automatic brake, were effective in preventing front-end collisions.
The results are promising: IIHS awarded a “superior” warning to 14 models out of 19, the highest designation possible. The other five were deemed “advanced,” the category that falls just below “superior.”
Many safety advocates hope this will be a standard feature on all new automobiles, and brokers may soon echo that sentiment. While collision-avoidance is just one factor used in determining auto premiums, its advantages are so notable, it could have a meaningful impact on them.
“To the extent a vehicle crashes less because of technology compared to a similar vehicle without the technology, that would be an insurance benefit,” said IIHS spokesperson Russ Rader in an email.
He points to Progressive Insurance as one carrier that has already started to take that into consideration. Earlier this year, the insurer announced that it planned to assign rate discounts for vehicles featuring stability control, adaptive headlights and forward collision warnings on a state by state basis in the U.S.
Still, Rader emphasizes that it’s too early to laud collision-avoidance technology as an ideal solution just yet, especially since the technology’s relative infancy means it still faces certain setbacks.
“However, many automakers are putting the crash prevention sensors behind the grille where they’re vulnerable to damage. The sensors are expensive to repair, which can offset the benefit for insurance costs,” he said. “Some automakers are addressing that by moving the sensors to the windshield ahead of the rear-view mirror where they’re better protected.”
Although only 27% of car models are currently equipped with automatic brakes as a standard feature, an analyst with Consumer Reports feels that its strong points will cause that number to grow over time.
"If you are not alert, [are] looking down or something happens quickly, this is going to stop you from rear-ending somebody," he told CNBC. "This has the potential to stop a lot of accidents."
