Car safety is very important and it can save you money. Having a safe car is only the first step. Even a car that has all the latest and futuristic safety innovations can't save you from reckless driving. You need to make driving a responsibility and be a safe driver.
Safe driving decreases the cost of insurance by lowering the risk of loss occurring as a result of a car accident. A car loaded with safety features or built to withstand the impact of a car crash will have a better auto insurance rate than cars not equipped with such features. Having a safe car is better for drivers and passengers, and is a consideration accounted for in terms of lower insurance rates.
Insurance Company's Risk Assessment
An insurance company, whether it is offering homeowners', auto, life or health insurance, bases the price of its products on the presence of risk. Risk is an event that causes a loss or reduction in value to occur. The risk with respect to auto insurance is a direct result of a car accident and its impact on the auto insurance company's bottom line. Higher car safety means lower risk and lower insurance rates.
Determining Costs Based on Risk
The auto insurance company looks at its risk of loss on a class basis. That is, the potential for loss based on the age and experience of the driver and the risk of loss relative to the car's safety features. An insurance company knows through its claims experience and statistics gathered by organizations such as the Insurance Institute for Highway Safety (IIHS), an independent non-profit funded by the auto insurance industry, what the accident and crash rates are for certain types of cars and drivers. This information serves as the basis for the premium rates charged to a driver.
Minimizing Risk through Safety Features
The insurance company minimizes risks as best as they can by offering incentives to drivers who purchase safe vehicles. A safe vehicle is one that has been given a good or exceptional crash test rating by the IIHS and also the National Highway Traffic Safety Administration (NHTSA), an agency of the U.S. Department of Transportation. When a vehicle passes the rigorous safety testing performed by the IIHS and NHTSA with a good rating, the auto insurance company deems this a good measure of the relative safety of the vehicle. That factor, combined with other elements, goes a long way in helping set reasonable auto insurance rates for the insurer.
Buying Safe Cars to Lower Auto Insurance Costs
You are served best when you purchase a vehicle that has a high car safety rating. Most new and used car's safety features can be researched online and provide a buyer with a good idea of what to expect relative to insurance rates. The added bonus of purchasing a safe car and one with a good crash test rating is that such cars also retain their value well and have a high resale value. This is another important factor and helps to lower costs overall.
Car Safety Recalls: How to Stay Up to Date
Car safety recalls occur when a manufacturer or other party puts out alerts about a vehicle or vehicle part and allows consumers to return it for repair because of the existing safety issue. A car safety recall can be based on nearly any part or system of the vehicle that poses a threat to drivers, passengers or others.What Car Recalls Do
A car safety recall allows buyers to be compensated for cars or parts they bought that have been proven defective and dangerous. New information on cars also helps drivers be aware of risky situations involving specific vehicles or products. Consumers should keep all auto safety recall news in mind when maintaining or repairing a vehicle.
Finding Car Safety Recalls
You can get up to date car recall information from the National Highway Traffic Safety Administration (NHTSA), where auto safety recalls and other resources are kept current online. Use the NHTSA site to stay apprised of all possible road dangers and for other information from the U.S. government about what's going on with auto makers. You can also find out about a range of other safety issues and more, for staying on top of the newest happenings on the American roadway. News about government programs like Cash for Clunkers, seat belt use and all other kinds of information can be found on the NHTSA site.
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