Technology and Insurance Premiums: How Are They Related?

Technology is all around us: in our homes, cars, offices and everywhere else. It makes our lives easier, our cars safer and our communications more efficient. But how does it relate to your insurance? When a claim is made, everything is more expensive, which indirectly affects your insurance premium.


Technology is now an integral part of your vehicle. Not only has the design of auto parts improved, but the gadgets inside your car are also at the cutting edge of technology. This influences the statistics and calculations used to determine an annual premium.

In addition, technology is resulting in an increasingly specialized workforce, and with specialization comes price hikes.

These factors can end up impacting your annual premium.

More accidents.

Technology in cars is also linked to the number of accidents. In 2019, the second most common cause of accidents in Quebec was distracted driving. We need only think of our phones, smart car systems and the addition of in-car screens, which can distract us and make us less vigilant behind the wheel. Sometimes, however unintentionally, our eyes can stray from the road for a moment too long and we can lose control of the vehicle.

As you know, the world of insurance is an assortment of statistics and facts. The increase in technology-related accidents is also reflected in your insurance premium. It forces insurers to adjust premiums due to the rise in claims frequency and cost.

Another form of technology that has made its way into our cars is autonomous driving. The surge in self-driving cars means that body shops must be increasingly specialized to be able to repair automated driving systems — and specialization goes hand in hand with higher rates.

That being said, testing currently underway has shown that motor vehicle accidents are set to decline as this technology is refined. As you will have gathered, a significant drop in collisions or other accidents could reverse the current trend with insurers. Yes, it’s true: if we observe a decrease in the number of accidents, the price of your car insurance could be adjusted down. Although this change is still several years down the road, it’s always good to be prepared!

In conclusion, it’s important to remember that technology changes our behaviour on the road. Despite being incredibly useful, it can make us less vigilant behind the wheel and lead to distracted driving accidents. Both directly and indirectly, the increasing amount of technology inside our vehicles has compelled insurers to review their pricing and, more often than not, to increase their premiums.

Hopefully, in the coming years, self-driving cars will help reduce our risk of accidents and the cost of our insurance. In the meantime, if you have any questions about your policy, our team of brokers will be happy to assist you. Contact us!

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