How Safety Features Influence Car Insurance Premiums

How Can Car Safety Features Affect Insurance Premium Rates?

To determine their insurance premiums, Car Insurance firms use risk assessment. Cars with more sophisticated safety systems are often seen as less susceptible to certain kinds of risks, which could lead to lower insurance premiums. A car equipped with anti-lock brakes, airbags, and electronic stability control could be less likely to be involved in a severe accident.

 

However, not all insurance companies directly alter premium rates based on safety features. Some may add provisions that state that these features have no effect on the premium, or may even consider only certain features when determining rates.

 

For example, while additional airbags may not lower premiums, anti-theft features in a car may have an impact. Before you consider making any modifications to your car's safety features, it is always a good idea to discuss this with your Car Insurance provider to see how it impacts your premium.

 

Safety Features That May Affect Car Insurance Premiums

The Ministry of Road Transport and Highways (MoRTH) has made certain safety features mandatory. These safety features could lower Car Insurance premiums while also improving vehicle safety. The Indian government has set up certain standards to guarantee that modern car models have the technological features needed to increase safety and reduce risks. Here are a few significant safety features:

 

• Airbags: Front airbags for drivers in cars have been mandatory in India since July 1, 2019. From April 1, 2021, the Indian Government has mandated that all new cars must have co-driver airbags as well. Airbags are essential in decreasing injuries during accidents and making roadways safer for everyone.

 

• Anti-lock Braking System (ABS): As of April 1, 2018, ABS has become mandatory for all four- and two-wheelers with engine capacities over 125 cc. This technology helps prevent the wheels from locking up during braking, which not only gives drivers better control but also shortens stopping distances.

 

• Additional safety technologies: From July 1, 2019, features such as seat belt reminders for both drivers and co-drivers, overspeed warning systems, reverse parking sensors, and manual overrides for central locking have become mandatory for new cars. Together, all of these features contribute substantially to vehicle safety.

 

Discounts and Savings for Car Safety Features

Many insurance companies perceive a lower risk of accidents when a car has the latest safety systems, and are more likely to provide lower insurance premiums for such cars. These reductions can be significant, resulting in cost savings over the term of the policy.

 

For example, vehicles with sophisticated braking systems or multiple airbags may be eligible for lower premiums. This not only promotes safer driving but also encourages buyers to prioritise safety when purchasing a car.

 

Upgrading Safety Features on Older Vehicles

Many modern cars include improved safety measures, whereas older versions could sometimes lack these features. Upgrading an older car with modifications like ABS, additional airbags, or modern safety assist systems could drastically enhance safety. Beyond that, these safety features could potentially lower your Car Insurance premiums.

 

Conclusion

With the growth of India's automobile industry, safety features that lower Car Insurance have evolved into necessary components rather than optional extras in modern cars. These significant features, like airbags, anti-lock brake systems, and electronic stability control, not only help save lives but may also lower the cost of your Car Insurance.

 

If you currently drive a vehicle with advanced safety features or are thinking about upgrading, now is the time to review your Car Insurance plans to ensure they are in line with these changes. Shriram Car Insurance provides affordable policies and add-ons that complement your vehicle's safety features. Shriram Car Insurance makes you feel extra protected throughout your drive by providing affordable premiums, prompt customer service, and a wide range of add-ons.  

 

FAQs

1. Do safety features lower Car Insurance premiums?

Yes, certain safety features can lower Car Insurance premiums. As these technologies help reduce the risk of accidents and damage, many insurers acknowledge these safety features that lower Car Insurance premiums like ABS, airbags, and reverse parking sensors.

 

2. Which safety features impact Car Insurance premiums in India?

Safety features like Anti-lock Braking Systems (ABS), airbags, seat belt reminders, rear parking sensors, and electronic stability control can often lower Car Insurance premiums if your vehicle is equipped with them. These technologies enhance driver control and protect the occupants of the car.

 

3. Is it mandatory to have safety features like airbags to get Car Insurance in India?

While airbags are now a requirement for new vehicles sold in India, insurance companies generally don’t outright deny coverage for older cars that lack these safety features. However, cars with airbags or other safety features might qualify for lower Car Insurance premiums.

 

4. Will upgrading safety features affect the renewal premium for a multi-year policy?

If you enhance your safety features during a policy term, make sure to notify your insurer. This could lead to a lower premium when you renew, particularly if you have a three-year Car Insurance plan or longer-term coverage.