Connected Cars

At this point, we’re all getting used to smart technology. In fact, many of us depend on it. Both our smart phones and virtual home assistants continue to evolve -- turning our lights on when we’re not home, or adjusting our thermostat remotely, and even connecting to our home security systems to alert us to problems.

And guess what? Cars are getting “smarter” too.

While you’ve probably read or heard about driverless cars in the media, they’re still mostly a thing of the future. But there are already cars on the road that are anticipating and acting on your needs, and they can do way more than utilize a GPS navigation system. Some things connected cars can or will be able to do include:

  • Let you know when you need an oil change 
  • Schedule an appointment 
  • Find a parking spot
  • Order for you at a drive through 
  • Alert emergency responders, and more
  • All of this is good, but it does come at a cost. Literally.

The Price of Connected Cars 

There’s an old saying, you get what you pay for. And if you want a smart car with lots of bells and whistles, you will inevitably pay more. This will have a rolling effect on your other vehicle expenses.

Let’s say you’re in a wreck. Repairs aren’t as simple as just replacing a part anymore. Your car now requires specialists to perform work on the technology that was probably damaged during the wreck—software and systems that make your smart car smart. You may even be limited to certain locations with the expertise to service your car. All of this drives your repair costs up.

And because insurance companies know repair costs will be higher, your auto coverage premiums will likely increase as well.

The upside is that connected cars are intended to last longer and keep us safer. And because connected cars can collect data on driving habits, insurance policies may evolve to tailor coverage to reward safe cars and drivers. So that auto coverage that just increased? It might be offset with safe driver discounts.

How does this affect you?

Obviously, no one can predict how all this will play out. But all data points to the continued use and evolution of smart technology, including our vehicles. As the connected car industry grows, it will be important to stay informed as a consumer – both to monitor potential costs to you and to protect your privacy rights. At the same time, embrace the future, and enjoy the greater convenience and safety these cars will bring. 

Sea-Mountain Insurance is happy to answer questions about your automobile insurance needs. Give us a call today.