The cost of insuring modern homes and cars has been increasing across the country. There are a number of factors that influence insurance rates, including things that you may not have thought relevant. While you may not have any control over all of these factors, it is important to understand how they may affect you when it comes time to your home and auto insurance.
Newer models of cars have complex features and built-in technology
Modern car design is innovative and high-tech. Vehicles can include advanced features such as self-parking, navigation systems, GPS tracking, cameras, autonomous braking and automated liftgates. These features use sensors and advanced computer systems which are expensive to repair or replace in the event of a collision. They can also make the vehicle more attractive to a thief.
Until electric vehicles become more common, they will be more expensive to insure due to the cost to repair or replace the complex battery systems and other related components. In the event of an accident, electric vehicles will require the expertise of a specialist to repair them.
Since there can be sensors and cameras all over a vehicle, a small “fender bender” no longer simply involves replacing a bumper. That bumper will have components that need to be programmed to work with the car’s computer system. The parts and labour involved to repair a vehicle that has been in a relatively minor accident can add up.
New technologies can complicate windshield replacement. As is the case for bumpers, windshields can now have technology built into them including rain and light sensors. Not only must they be replaced, but they must be calibrated to work with the computer system.
Modern homes are smarter and environmentally friendly
Smart home innovations and green home materials are becoming more commonplace and have many benefits. Homeowners are eager to improve security, be energy efficient, conserve water, manage waste and have healthy air quality. They are quick to install the latest technical tools and use sustainably sourced, environmentally friendly, and/or recycled building materials.
Whether you are answering your door remotely with a video doorbell, turning on your appliances from work, or arming your alarm system from your cell phone, the cost of having a connected home can be costly.
Many homes now include extensively finished basements, including bedrooms, bathrooms, and entertainment rooms with massive, Ultra HD Smart TV’s or built-in home theater equipment and so on. A claim due to a sewer backup, for example, can cause significant damage to furnishings and electronics.
While modernization and technology can increase the value of vehicles and homes, there are certain features that may result in a policy discount. Some insurers offer Autonomous Emergency Braking System and Green Vehicle Discounts and security and water alarm discounts on property.
For information and to find out how to save on insurance, contact your insurance broker.