The research firm, Celent, recently released a report exploring the possibility that, as technology becomes more sophisticated, auto insurance may well become unnecessary. But just how realistic is this hypothesis?
Driving in the Technology Bubble
There is no question that technology has made driving safer. From antilock brakes to air bags, sensor alarms to rearview cameras and dashboard screens, the risk of car accident and injury has already substantially decreased over the past 25 years, and yet, according to the US Census Bureau's 2012 report on transportation motor vehicle accidents and fatalities, the number of accidents in 2009 was higher than the number in 1995.
This data indicates that while safety features can definitely affect accidents and survival rates, it's doubtful that we’ll ever enjoy an era completely free of auto accidents. Technology, while it enhances our experience and keeps us safer, does not create a bubble that eradicates risk.
Hoping for the Best, Preparing for the Worst
If your vehicle has safety features designed to keep you safe and minimize risk, you may be hoping for the best. But that doesn't mean you shouldn't prepare for the worst. An auto insurance policy is there to provide financial protection from the damages created by the risks you face each day, whether driving or parked. Those risks can take the form of many events including vandalism, theft, accidents, property damage, injury or Mother Nature—something no technology can protect you from.
What is likely to become true, possibly even in the near future, is the fact that your auto insurance policy needs will change. You may need more or less protection for particular risks, higher or lower deductibles, and different limits according to the changing value of your vehicle. And since different auto insurance companies provide different rates, your premium could change as well, even if your policy remains static. That's why it's important to complete an annual auto insurance review with your agent so that you can renew your policy with up-to-date coverage and the most advantageous premiums.
When you're ready to complete your annual Missouri auto insurance review, give us a call at 800-530-5822 and schedule an appointment with one of our experienced auto insurance professionals.