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Do Cars with New Technology Cost More to Insure?

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Some new technology might reduce auto insurance premiums. AAA investigates.

People often assume they will pay less for auto insurance on an older car than they would on a newer version of the same model. But that’s not always true. While recently introduced technology makes newer vehicles more expensive, it doesn’t mean they’ll have higher insurance rates. That’s because the technology—including the examples below—may actually reduce the number of insurance claims:Antitheft devices
Computer chips in keys or key fobs prevent vehicles from starting without them, making the cars much more difficult to steal.Air bags
Newer vehicles may have side impact or advanced frontal air bags—or both. As its name implies, a side impact air bag protects your head and chest when your vehicle is struck on the side. Advanced frontal air bags reduce air bag-related injuries by adjusting the level of deployment based on an occupant’s weight, seat position, seat belt use and severity of the crash.Other technology 
Backup cameras, anti-rollover and lane check/changing technology all reduce the frequency and severity of accidents, lowering the amount insurance companies pay in claims.For more information on your coverage and liability, stop by any AAA office or visit AAA.com/Insurance.


A version of this story appears in the January/February 2015 issue of AAA Living magazine.


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