ADAS Car Insurance Impact

As an FCA-authorised expert broker that has helped arrange over 750,000 policies, WeCovr provides this guide to help you understand the complex world of ADAS and motor insurance in the UK. This technology is reshaping how insurers calculate risk, making it essential for drivers to be informed.

UK Drivers Decoding How Advanced Driver Assistance Systems (ADAS) Affect Your Car Insurance Premiums, Repair Costs, and Claims Process – Your Essential Guide

Advanced Driver Assistance Systems (ADAS) are no longer the preserve of high-end luxury vehicles. Features like automatic emergency braking and lane-keeping assist are now common on everyday hatchbacks, family SUVs, and commercial vans across the UK.

These smart systems are designed to make our roads safer. But they also introduce a new layer of complexity to the world of motor insurance. How does this technology affect your annual premium? What happens to repair costs when a simple bumper scrape involves recalibrating a sophisticated sensor? And who is liable when a semi-autonomous system is involved in an accident?

This essential guide breaks down everything UK drivers, vehicle owners, and fleet managers need to know.

Understanding Your Legal Motor Insurance Obligations in the UK

Before diving into the impact of ADAS, it’s crucial to understand the fundamental legal requirements for driving in the UK. Under the Road Traffic Act 1988, it is a criminal offence to use, or permit others to use, a vehicle on a public road without at least third-party insurance cover.

The police can issue a fixed penalty of £300 and 6 penalty points for driving without insurance. If the case goes to court, you could face an unlimited fine and be disqualified from driving.

There are three primary levels of motor insurance cover:

1. Third-Party Only (TPO): This is the minimum level of cover required by law. It covers injury or damage you cause to other people, their vehicles, or their property. It does not cover any damage to your own vehicle or your own injuries.
2. Third-Party, Fire and Theft (TPFT): This includes everything TPO cover offers, plus protection if your own vehicle is stolen or damaged by fire.
3. Comprehensive: This is the highest level of cover. It includes everything from TPFT, but crucially, it also covers damage to your own vehicle, regardless of who was at fault in an accident. It often includes other benefits like windscreen cover as standard.

Business and Fleet Insurance Obligations

For businesses, the same laws apply. Every vehicle used for business purposes, whether it's a single van or a large fleet of cars and HGVs, must have the correct business motor insurance. Standard private car insurance will not cover you for commercial use, including commuting to multiple work sites or transporting goods. Fleet insurance is a specialised policy designed to cover multiple vehicles under a single, manageable plan, often providing cost and administrative benefits.

Key Car Insurance Concepts Explained

To grasp how ADAS affects your policy, you need to be familiar with these core insurance terms:

• No-Claims Bonus (NCB) / No-Claims Discount (NCD): This is a discount you earn for each year you go without making a claim on your motor insurance policy. It can significantly reduce your premium, with many insurers offering discounts of up to 70% or more after five or more claim-free years.
• Excess: This is the amount of money you must pay towards any claim you make. There are two types:
  • Compulsory Excess: A fixed amount set by the insurer.
  • Voluntary Excess: An additional amount you agree to pay on top of the compulsory excess. Choosing a higher voluntary excess can lower your premium, but you must be sure you can afford to pay the total excess if you need to make a claim.
• Optional Extras: These are add-ons you can choose to enhance your policy, such as:
  • Breakdown Cover: Provides roadside assistance if your vehicle breaks down.
  • Legal Expenses Cover: Covers legal costs if you are involved in a non-fault accident and need to pursue a claim for uninsured losses (like your excess or loss of earnings).
  • Courtesy Car: Provides a replacement vehicle while yours is being repaired after an insured incident.
• How Claims Affect Premiums: Making a claim, especially an at-fault one, will typically lead to an increase in your premium at renewal and a reduction in your NCB (unless it is protected).

What Exactly are Advanced Driver Assistance Systems (ADAS)?

ADAS refers to a suite of electronic systems in a vehicle that use sensors, cameras, and radar to perceive the world around them and either provide information to the driver or take automatic action. Their primary goal is to increase safety and reduce the risk of human error, which the Department for Transport attributes to the majority of road accidents.

From July 2024, the new General Safety Regulation 2 (GSR2) mandates that all new cars sold in the UK must be fitted with a range of safety technologies, including Intelligent Speed Assistance, Driver Drowsiness and Attention Warning, and an Event Data Recorder. This means ADAS is now a standard, not a luxury.

Common ADAS Technologies Explained

The ADAS Paradox: How Safety Features Impact Your Insurance Premiums

Logically, a safer car should mean cheaper insurance. While this is often true, the reality of ADAS presents a paradox for insurers and drivers alike. The technology that prevents accidents can also make repairs significantly more expensive when they do happen.

Why ADAS Can Lower Your Car Insurance Costs

Insurers base their premiums on risk. Data overwhelmingly shows that certain ADAS features reduce the frequency and severity of accidents.

• Reduced Accident Frequency: According to research by Thatcham Research, the UK's automotive risk intelligence experts, vehicles fitted with Autonomous Emergency Braking (AEB) are involved in around 38% fewer front-to-rear crashes than those without. Fewer accidents mean fewer claims, which insurers reward with lower premiums.
• Lower Insurance Groups: Every car in the UK is assigned an insurance group from 1 (cheapest) to 50 (most expensive). This rating is influenced by factors like price, performance, security, and repair costs. The presence of effective, factory-fitted ADAS, particularly an AEB system that meets industry standards, can help place a vehicle in a lower insurance group. Insurers look for the letter 'E' (Exceeds) in the security rating, which indicates a superior safety system is fitted.
• Fewer Whiplash Claims: AEB is particularly effective at preventing low-speed urban collisions, which are a major source of costly whiplash and personal injury claims. The Association of British Insurers (ABI) has long highlighted the link between these incidents and premium costs.

The Hidden Costs: Why ADAS Can Sometimes Increase Premiums

While ADAS prevents accidents, the cost of putting things right after a collision has skyrocketed. This is the other side of the ADAS insurance coin.

• Expensive Components: ADAS relies on a network of delicate and expensive components. A simple windscreen is no longer just a piece of glass; it houses cameras and sensors for lane-keeping and traffic sign recognition. A bumper may contain multiple radar and ultrasonic sensors for parking and blind-spot monitoring.
• The Calibration Requirement: This is the most significant cost driver. After a repair or replacement of a part housing an ADAS sensor—even a minor one like a windscreen replacement or wheel alignment—the system must be precisely recalibrated to factory specifications. Failure to do so could render the safety system ineffective or, worse, cause it to malfunction.
• Specialist Labour and Equipment: Calibration requires a clean, controlled workshop environment and expensive, specialised diagnostic equipment. This means repairs must be carried out by technicians with specific ADAS training, increasing labour costs.

Repair Cost Comparison: Standard vs. ADAS-Equipped Vehicle

These inflated repair costs are passed on to insurers, who in turn factor them into the premiums for ADAS-equipped vehicles. This can sometimes offset or even outweigh the discount gained from the vehicle's enhanced safety profile.

Navigating a Claim with an ADAS-Equipped Vehicle

Making an insurance claim with a high-tech car requires a little more diligence from the driver.

What to Do After an Accident

Follow the standard procedures: stop in a safe place, check for injuries, and exchange details (names, addresses, vehicle registrations, and insurance information). However, add these ADAS-specific steps:

1. Inform Your Insurer Immediately: When you report the claim, make it clear that your vehicle is fitted with ADAS features. Be specific about the systems it has.
2. Document the Damage: Take photos not just of the impact area but also of parts of the car that house sensors, like the windscreen, bumpers, and wing mirrors, even if they don't look damaged.
3. Note the System's Behaviour: If you can recall, make a note of any warnings the ADAS displayed before the incident. This could be relevant later.

The Repair and Calibration Challenge

This is the most critical part of the claims process for an ADAS vehicle.

• Use Approved Repairers: Your insurer will have a network of approved repairers. It is vital to use a garage that is certified to work on ADAS and has the correct calibration equipment for your specific make and model. Using a non-specialist could invalidate your warranty and compromise your safety.
• Insist on a Calibration Certificate: After any repair that could affect an ADAS sensor, the repairer must perform a calibration and provide you with a certificate to prove it has been done correctly. This is your proof that the safety systems are functioning as intended. Keep this certificate with your vehicle's service history.
• Understand the Types of Calibration:
  • Static Calibration: Performed in a workshop with the car stationary, using special targets and boards placed at precise distances and heights.
  • Dynamic Calibration: Requires the technician to drive the vehicle on well-marked roads at a specific speed for a set distance to allow the system to self-calibrate.

Who Is at Fault? The Shifting Landscape of Liability

ADAS is blurring the lines of responsibility. If an accident occurs while an LKA or ACC system is active, was the driver at fault for not monitoring it correctly, or did the system fail?

Currently, the law is clear: the driver is always in control and responsible for the vehicle, even with ADAS active. These are assistance systems, not autonomous ones.

However, the Automated and Electric Vehicles Act 2018 is preparing the UK for a future with self-driving cars. It establishes a framework where, if a vehicle is officially listed as "automated" and is operating in self-driving mode, the insurer will be liable for any accidents it causes. This shifts the burden from the driver to the insurer, who would then have the right to recover costs from the manufacturer if a system fault was to blame.

Your Guide to Buying and Maintaining a Car with ADAS

Tips for Buying a New or Used ADAS Vehicle

1. Prioritise Effective Systems: Focus on models with a highly-rated AEB system. Check Euro NCAP safety ratings, which provide detailed scores on ADAS performance.
2. Get a Full Spec Sheet: When buying used, ensure you know exactly which ADAS features are fitted. Don't assume a high-trim model has everything.
3. Check the Insurance Group: Before you buy, get an insurance quote. This will give you a real-world idea of the running costs. An expert broker like WeCovr can help you compare motor insurance UK policies to see how different insurers price the same ADAS-equipped model.
4. Inspect for Poor Repairs: On a used car, look for signs of previous damage, especially around bumpers and the windscreen. Mismatched paint or poorly fitting panels could indicate a past repair where ADAS may not have been correctly recalibrated.

ADAS Maintenance and Care

• Keep it Clean: Regularly clean your windscreen, camera lenses, and sensor panels on the grille and bumpers. Dirt, ice, or road grime can obstruct their view and cause them to malfunction.
• Be Careful with Modifications: Changing wheels, tyres, or suspension height can alter the vehicle's geometry and may require the ADAS to be recalibrated.
• Use Specialists for All Relevant Work: This includes windscreen replacements, wheel alignments, and any bodywork. Always ask if they are ADAS-certified.

ADAS Impact Across Different Vehicle Types

Electric Vehicles (EVs) and ADAS

EVs and ADAS are a natural pairing. Manufacturers often bundle the latest safety tech into their new electric models to enhance their futuristic appeal. However, this creates a double-whammy for insurance costs. EVs are already more expensive to repair due to the specialist knowledge required and the high cost of battery packs. When you add in the cost of ADAS component repair and calibration, the potential for a large claim increases, which is reflected in the insurance premium.

Vans, HGVs, and Fleet Insurance

For commercial vehicles, ADAS is a game-changer in risk management. The benefits are magnified across a fleet:

• Accident Reduction: AEB and blind-spot monitoring are hugely valuable for HGVs operating in busy urban environments, reducing the risk of costly accidents involving vulnerable road users.
• Driver Wellbeing: Drowsiness detection systems can prevent fatigue-related incidents, a major concern for long-haul drivers.
• Data and Telematics: When combined with telematics (black box) technology, ADAS provides fleet managers with a complete picture of driver behaviour and vehicle performance. This data can be used to implement driver training and reward safe driving.

Insurers are increasingly offering specialised fleet insurance policies that recognise these benefits. A broker like WeCovr, which has deep expertise in business and fleet insurance, can help companies demonstrate their commitment to safety through ADAS and telematics, securing more favourable terms and lower premiums. Furthermore, WeCovr customers who take out motor or life insurance can often access valuable discounts on other insurance products, creating further savings.

How to Get the Best Value Motor Insurance for Your ADAS-Equipped Car

Owning a high-tech car doesn't have to mean paying high-tech premiums. Follow these steps to secure the best vehicle cover.

1. Declare All ADAS Features Accurately: When getting a quote, don't just rely on the vehicle registration to populate the details. Manually check and declare every factory-fitted safety system. Insurers need to know what's on your car to price the risk correctly.
2. Build and Protect Your No-Claims Bonus: Safe driving remains the single most effective way to lower your insurance costs over time. Consider protecting your NCB if you have several years built up.
3. Review Your Voluntary Excess: Increasing your voluntary excess can lower your premium, but ensure the total excess (compulsory + voluntary) is a sum you could comfortably afford to pay.
4. Pay Annually if Possible: Paying your premium in one lump sum avoids the interest charges that are usually applied to monthly payment plans.
5. Don't Just Auto-Renew: The best car insurance provider for you one year may not be the best the next. The market is competitive, and loyalty doesn't always pay.
6. Use an Expert Broker: This is the most effective strategy. The motor insurance market is complex, especially with ADAS. An FCA-authorised broker like WeCovr works for you, not the insurer. We use our expertise and access to a wide panel of insurers—including specialist underwriters—to find the policy that best fits your needs and budget. We understand how to present the safety features of your vehicle to get you the credit you deserve, navigating the ADAS paradox to find you the best value.

Frequently Asked Questions (FAQ)

Will Autonomous Emergency Braking (AEB) definitely lower my car insurance?

Not always directly, but it has a strong positive influence. AEB significantly reduces your risk of an at-fault accident, which helps you build your no-claims bonus. It also helps place your car model in a lower insurance group. However, the higher repair costs associated with AEB sensors can sometimes offset these savings, which is why it's crucial to compare quotes from different insurers who weigh these factors differently.

Do I have to tell my insurer about my car's ADAS features?

Yes, absolutely. You have a legal duty to disclose all material facts about your vehicle. Providing accurate information about factory-fitted safety systems is essential. It ensures your policy is valid and allows the insurer to price your risk correctly, which could lead to a lower premium. Failing to declare them could cause issues in the event of a claim.

What happens if my ADAS is not calibrated correctly after a repair?

The consequences can be severe. An uncalibrated system may not work when you need it most—for example, the AEB might fail to engage in an emergency. In some cases, it could even malfunction and cause an accident, for instance, by braking suddenly for no reason. This not only puts you and others in danger but could also lead to your insurer refusing a claim if the incorrect repair is deemed to be the cause of the incident.

How can a broker like WeCovr help me find cheaper insurance for my high-tech car?

An expert broker like WeCovr adds value in several ways. We have access to a wider range of insurers than a standard comparison website, including specialist providers who understand ADAS. We can ensure your vehicle's safety features are correctly declared and highlighted to underwriters. This helps find insurers who offer the best discounts for ADAS, balancing the safety benefits against the repair costs to secure you the most competitive and appropriate motor policy.

Ready to find out how your car's safety features could affect your premium?

Contact WeCovr today for a free, no-obligation motor insurance quote. Our FCA-authorised experts will compare policies from a panel of leading UK insurers to find the right cover for you, your business, or your fleet.