August 21, 2019
No need to draw you a picture: technology has completely changed our lives. This is true for many aspects of our daily lives, but particularly for an issue that is especially close to our hearts: road safety.
Over the past twenty years, technological innovations such as collision prevention systems, backup cameras, blind spot monitors and airbags have contributed to reducing road accident deaths by more than 30%. However, technology has not lowered insurance premiums: highly sophisticated automotive parts, such as bumpers and exterior mirrors, cost more to repair today than their older equivalents.
Road Safety in the Age of Autonomy
Since the arrival of automated driving features like Tesla’s Autopilot, we can see the impact on road safety records. According to experts, more than 90% of car accidents are caused by human error. We can therefore assume that if there were only autonomous vehicles on the roads, collisions and accidents would be much rarer. Moreover, since the driving programs of these vehicles generate a lot of data, insurance contracts and premiums could be personalized according to the needs and driving style of the insured. Great, right?
Technology also poses certain challenges. Until driverless cars become commonplace, they will share the road with ordinary cars and “a variety of vehicles – personal and shared – including those equipped with autonomous features, which will lead to greater complexity in the market,” explains Louis Gagnon, President of Canadian Operations at Intact Insurance. Will the advent of autonomous vehicles encourage more non-drivers to buy a car, increasing traffic on the road network and thereby the risk of accidents? Or will we choose the path of car sharing to replace the individual car, which will result in a significant decrease in urban traffic? The future will tell, but one thing is certain: the complex operating systems of autonomous cars will be expensive to repair in case of damage, which will certainly have an effect on insurance premiums.
Technology and Our Driving
If our cars have changed a lot over the past decades, the same is true of our habits behind the wheel. It would be unthinkable for us today to part with our smartphones, but their effect on our driving and on road safety is particularly alarming. Distracted driving is now the leading cause of accidents resulting in deaths and injuries in Canada. Moreover, studies show that drivers who text while driving are 23 times (!) more likely to cause an accident. That’s huge!
How can insurers help improve driving habits? Through smartphones, of course! Most auto insurers, including Intact Insurance, now offer programs that allow them to adjust policyholders’ premiums based on their driving habits.
For example, the My DrivingMD program takes into account several aspects of your driving such as speed, smoothness and vigilance to personalize your insurance premium. Good driving habits are rewarded and allow you to save on your auto insurance, while riskier habits could increase your premium.
In addition to being able to discover if your driving is safer or riskier than other drivers, you can benefit from a set of practical tools to help you in case of trouble on the road, get tips and tricks to adopt eco-responsible driving and focus on better fuel efficiency.
Ultimately, adopting good driving habits improves road safety for all drivers. Isn’t that what we all want in the end?
If there’s one thing to remember, it’s that the best way to make roads safer (and reduce your premium!), is to put away your phone while you’re driving. Your notifications, texts and important emails will still be there when you take the key out of the ignition.
