New car technology means higher insurance premiums

New car technology means higher insurance premiums
New cars have technology that you pay for on the lot and in insurance costs. (Source: Pixabay)

(WWBT) - New cars come with great technology, but that technology comes with a price.

Fancy features don't just boost the sticker price at the dealership. They also boost insurance costs because it's expensive to repair.

Sensors and cameras that make your car easier to drive, and maybe even safer, mean repair costs will soar, and with that comes a higher monthly premium.

Figuring out insurance costs in advance of purchasing a new car will help keep you from overextending yourself on the payment and monthly premium increase, which is a hidden cost many people don't account for.

A typical repair job for a broken fender on a new entry level luxury car in 2014 was $1,845, according to data from Liberty Mutual.

But that same job in 2016 cost $3,550.

The reason is because the 2016 model has distance sensors in the bumper, which translates to expensive parts and higher labor costs.

The average car on the road is nearly 12 years old, so buyers aren't prepared for the sharp increase in insurance premiums for driving a newer vehicle.

Insurance companies can give an estimate in advance of how much insurance premiums will rise to give buyers a better idea of what to expect once they've driven their new car off the lot.

Copyright 2018 WWBT NBC12. All rights reserved.