Common car Advanced Driver-Assistance Systems and the impact on your car insurance

In a recent article, we took a look at car safety ratings and their impact on insurance. Truth be told, in many cases when people start looking for a new car, especially those with a family, the vehicle's safety will be among the most important things considered. In recent years we have seen smart technologies employed in cars with increasing frequency, especially when it comes to safety. Here we take a look at the most commonly requested car safety tech features, and the impact they might have on the cost of car insurance in Hong Kong.

The most popular car safety features

Let's face it, the days of roll-down windows, straight steel bumpers, and single-airbag cars are gone. These days, car manufacturers have implemented a seemingly never-ending list of safety features, many powered by modern "smart" technologies. When combined, these safety-oriented technologies are referred to by governments and manufacturers as Advanced Driver-Assistance Systems (ADAS). Together, these systems aim to make not only your car, but also road driving, even safer.  

Here are some of the most popular ADAS features people should consider when looking for a new vehicle.

Collision warning/avoidance systems

Most new vehicles have a variety of sensors around the body of the car that monitor the surroundings and road ahead/behind. One of the features that uses the data generated by these sensors is the collision warning/avoidance system. If the car judges that you are about to run into something it will either sound an alert or take action to stop or swerve the vehicle out of the way.

In many cases, these systems are used to minimize the damage caused by a collision rather than avoid it completely. For example, if triggered the car will start to apply the brake before the driver can react in order to slow the vehicle. Other cars might actually take action and move the vehicle if there are no other obstructions.

Automatic navigation systems

While not necessarily a new system, the GPS, and navigation system has become a standard component of many vehicles. Today, many of these systems have become incredibly powerful and can even work with your phone to broadcast up-to-date information about traffic and road conditions and even reroute you if necessary.

Beyond that, many now have speed limits included with the maps, letting you know if you are speeding or in an area where the speed limit has changed.

Backup cameras

Backup and vehicle position cameras are among the most useful ADAS tools for drivers in Hong Kong, or any city for that matter. By providing you with a clear view of what's directly ahead or behind you, you can better avoid obstacles that would otherwise cause damage while parking.

Here in Hong Kong, one of the best reasons why these cameras are so important is they allow you to see pedestrians behind the vehicle, and when combined with backup sensors that alarm you when someone or something is close to the vehicle, serve to minimize the chances of you hitting someone who darts behind the car when you aren't looking.

Lane departure warning system

Utilizing the various sensors now found on almost every car, this system tracks the lane your vehicle is moving in. If you start to drift you will either receive a warning, or the car might make a small adjustment to bring you back into your lane.

This system can be especially useful if you are driving at night, or on wet roads where the lane demarcation lines (both yellow and white) could be harder to see. If the car detects that you are straying from your lane you will usually hear a loud beeping sound alerting you to take action and correct your course before you cause an accident.  

Auto Parking/parking assistance

This increasingly popular safety-related system can be found on a variety of vehicles including luxury sedans and family cars. As you can guess, they are designed to either help you with parking (you push the gas and brake pedals while the car uses sensors to steer the vehicle into your parking space) or they can be fully automated (push a button and the car will park itself).

Other features here include the ability to automatically have the car pull out of a parking spot where the driver and passengers have more room to get into the car. Regardless of which version of parking assistance you have, being able to safely park a vehicle can be incredibly important, especially in Hong Kong where parking and space are at a premium.

Driver drowsiness detection

Did you know that driving while tired/drowsy can be just as bad as driving drunk? According to the National Sleep Foundation, "If you’ve been awake for a full 24 hours and drive...it’s like you have a blood alcohol level of .10." This is about double the legally allowed blood alcohol level in Hong Kong (0.055).

Being this tired is nothing short of dangerous. As such, car manufacturers are starting to include driver drowsiness detectors into the safety features of their vehicles. These sensors monitor the driver and the car for the telltale signs of drowsiness including:

• Sharp nodding of head
• Drooping eyes
• Position of car on the road
• Jerky steering or motions

If the car's system notices these it will usually sound a loud alert and in some cases might even take action to pull over should you be using other features like auto-drive.

Do Advanced Driver-Assistance Systems work to help keep my car safer?

Interestingly, while a large number of manufacturers have implemented ADAS features in their vehicles, there is not a wealth of data available around whether they are actually helping make the roads or vehicles safer.

Of the reports available, the European Commission and European Road Safety Observatory have proven to be the most in-depth. Their report on ADAS in 2016 has a wealth of findings including the fact that cars with Autonomous Emergency Braking and Forward Collision Warning (both parts of a collision avoidance system) saw a 44% reduction in rear-endings resulting in injury.

The report also found that in vehicles equipped with a lane departure warning system saw, "a 33% reduction in near-crash events related to lane change and a 19% reduction in those related to road departure."

In short, it looks like many ADAS are indeed helping to make the roads safer. The problem here is that with little to no regulation, some "features" might actually be making it harder for the driver to concentrate. For example, it can be incredibly distracting for a car's proximity warning to go off when you are backing up and someone walks behind the vehicle causing you to look at the warning rather than the road. This is distracting and could inadvertently lead to a higher chance of an accident.  

We believe that while they may be distracting, these systems - when employed by car manufacturers properly - could be far more beneficial than not.

What is the impact of having these features on my car insurance?

Generally speaking, in Hong Kong, if you were to buy a vehicle with ADAS, you likely will not see higher car insurance premiums than the same make or model without these features. Of course, if you add in these features after you have purchased the vehicle e.g., after-market installation of a camera, you might see higher premiums, but not necessarily immensely higher.

What we have seen, however, is that cars bought from the manufacturer with these systems already installed might result in insurers offering better benefits with their coverage plans, especially comprehensive insurance.

For example, if you have a No Claims Discount (NCD) and are in an accident but can use the car's sensor data combined with video cameras to prove that it was 100% not your fault, the insurer might waive the loss of the NCD.

Beyond that, driving a safer vehicle (while you likely won't pay less for insurance) does mean that there is a higher chance of you and your family walking away from a crash without injury, or with minimized damage. Or, if your car's systems are better able to help you avoid an accident (e.g., putting the brakes on before you can in a potential accident), you will see your chances of driving error free increase. If your plan includes a NCD benefit, then this, in turn, could end up saving you much more money in the long-term.

To learn more about car insurance for your vehicle, contact Kwiksure today!