As an insurance professional with over a decade experience in personal auto industry, I applaud the NTSB’s efforts in advocating effective safety measures. I do, however take issue with Chariman Hart’s statement that “you shouldn’t have to pay extra for technology that can help prevent a collision altogether.” Anyone with a rudimentary understanding of economics will reconize that this is a very populist and disingenous viewpoint. Although the cost per unit for collision avoidance systems will decrease with the economies of scale that forced adoption of the systems would undoubtably produce, who is going to cover that additional cost? The added cost will, of course, be passed on to the automobile consumer. That being said, there could be a cost savings on the insurance side for an auto owner, but how much, and will that offset the additional cost of the system? I would like to see some rigorous research and analysis around that aspect of this recommendation.
We have updated our privacy policy to be more clear and meet the new requirements of the GDPR. By continuing to use our site, you accept our revised Privacy Policy.
As an insurance professional with over a decade experience in personal auto industry, I applaud the NTSB’s efforts in advocating effective safety measures. I do, however take issue with Chariman Hart’s statement that “you shouldn’t have to pay extra for technology that can help prevent a collision altogether.” Anyone with a rudimentary understanding of economics will reconize that this is a very populist and disingenous viewpoint. Although the cost per unit for collision avoidance systems will decrease with the economies of scale that forced adoption of the systems would undoubtably produce, who is going to cover that additional cost? The added cost will, of course, be passed on to the automobile consumer. That being said, there could be a cost savings on the insurance side for an auto owner, but how much, and will that offset the additional cost of the system? I would like to see some rigorous research and analysis around that aspect of this recommendation.