Lower Car Insurance Rates
“New technology is not a panacea for every driving situation” Loretta Worters, Vice President of Communications for the Insurance Information Institute
(PRWEB) August 29, 2012
Consumers today may be looking at a future bright with lower car insurance rates due to the use of modern technology in vehicles. This possibility was suggested by a report from the consulting firm Celent (found here: (http://www.celent.com/reports/scenario-end-auto-insurance), and would be based on the resulting lower claims values and safer driving practices afforded by such technology. In today’s economic climate, consumers are seeking ways to save money wherever possible, particularly on expenses that recur on a monthly basis.
Certain technological advances have already become common place and insurance companies frequently offer discounts to consumers who utilize them. New technology is currently being developed that could eventually lower car insurance rates even further. Vehicle-to-vehicle technology (V2V) is a unique system that uses wireless networks to allow vehicles to communicate with each other. Essentially, V2V receives data from other vehicles and translates it electronically to the driver in the form of messages or warnings. The goal is to assist non-impaired drivers in avoiding collisions or, at the very least, reducing the severity of accidents when they do occur.
V2V is capable of helping unimpaired motorists to avoid hazards such as blind spots, vehicles stopping suddenly, or blind intersections and turns. As pointed out by Loretta Worters, Vice President of Communications for the Insurance Information Institute, “New technology is not a panacea for every driving situation” and impaired motorists driving under the influence of alcohol or drugs will not necessarily benefit from V2V. However, under normal driving conditions, the technology is extremely promising, potentially providing a measure of safety that has been previously impossible to achieve. The resulting lower car insurance rates would undoubtedly be a welcome bonus to consumers.
The U.S Department of Transportation has just begun the second phase of what Federal officials have referred to as “the largest road test” of the V2V project. Should it prove to be as successful as the first phase, Federal officials will decide by 2013 if they will be pursuing the development of this intriguing technology.
For motorists, this technology and others like it provides a hope of lower car insurance rates. Technology such as the V2V would greatly reduce the severity of accidents, making the roads safer and payouts from insurance companies lower. The overall effect could be lower car insurance rates. The Department of Transportation surveyed motorists regarding the V2V project and found that the majority of participating consumers would certainly use this technology, if it became available.
The V2V is currently a potential star on the horizon, as it is not yet on the market and is still in the 2nd phase of testing for long-term feasibility. There are other ways consumers can procure lower car insurance rates, in the meantime. Utilizing current technologies, following traffic laws and obeying speed limits can go a long way in ensuring a stellar driving record. This in turn gives auto insurance companies incentives to offer discounts and lower car insurance rates. Another prudent course of action is for consumers to comparison shop for lower car insurance rates. Comparing auto insurance quotes is a key way to discover which companies are offering lower car insurance rates at any given time.