Autonomous vehicles may lead to consumer savings
A new program announced between Volvo and Liberty Mutual Insurance may be a sign of the future—one that could get more consumers into autonomous vehicles.
Citing Volvo’s success with its Volvo City Safety technology, Liberty Mutual created its TechSafety program to reward customers who drive a Volvo with active or passive advanced safety features by offering a discount on their premium. Volvo’s technology includes pedestrian, cyclist, and large animal detection with emergency autobrake, and Liberty Mutual will continue to evaluate the impact technologies like these have on accident frequency and severity.
The companies cited a January 2016 report from The Insurance Institute for Highway Safety (IIHS) which showed how cars equipped with Volvo City Safety reduced rear-end crashes by 41% and injuries by 47%. This, in addition to the potential money saved, is expected to encourage the adoption of advanced safety features among drivers, the companies said in a statement.
"We believe vehicles equipped with these types of advanced safety features will not only reduce crashes but help our customers worry less on the road while providing them new ways to save on their auto insurance," said Hamid Mirza, Senior Vice President of Product Strategy and Solutions at Liberty Mutual Insurance. "This agreement with Volvo represents an important opportunity to build upon the success of these new technologies now available to our customers."
Liberty Mutual said that its TechSafety discount began in April 2017 in Illinois, with expanded rollout of the program to other states throughout the year. All Volvo vehicles equipped with City Safety technology are eligible for the program, which can reportedly save Liberty Mutual customers as much as an additional 10% on their premiums.