ADAS & UK Car Insurance

Do Advanced Driver-Assistance Systems Really Lower Your UK Car Insurance What Every Driver Needs to Know About Safety Tech and Premiums

Navigating the world of UK motor insurance can feel complex, especially with the rapid evolution of vehicle technology. As an FCA-authorised broker that has arranged over 750,000 policies, WeCovr understands these nuances. This definitive guide explores whether Advanced Driver-Assistance Systems (ADAS) genuinely reduce your premiums or if there's a more complicated picture every driver needs to understand.

Modern cars are packed with technology designed to prevent accidents. From automatic braking to lane-keeping assistance, these systems promise a safer future on our roads. The logical assumption is that safer cars should mean cheaper insurance. However, the relationship between safety tech and your annual premium is not as straightforward as it seems. Let's delve into the details.

What Exactly Are Advanced Driver-Assistance Systems (ADAS)?

Advanced Driver-Assistance Systems, or ADAS, are a suite of electronic systems designed to assist the driver, enhance safety, and automate certain driving tasks. They use a network of sensors, such as cameras, radar, and lidar, to perceive the world around the vehicle and either warn the driver of potential hazards or take temporary control of the car to avoid a collision.

These features are no longer confined to premium models; due to new regulations and consumer demand, they are becoming standard on most new cars sold in the UK.

Here are some of the most common ADAS features you'll find today:

According to data from the Society of Motor Manufacturers and Traders (SMMT), well over half of new cars now come with AEB as standard, a figure set to reach 100% due to new safety regulations.

The Insurer's Perspective: Why ADAS Should Lower Premiums

In principle, motor insurance is simple: the premium you pay reflects the level of risk you present. Insurers calculate this risk based on numerous factors, including your age, driving history, location, and the car you drive. A vehicle that is statistically less likely to be involved in an accident should, logically, attract a lower premium.

This is where ADAS enters the equation. The data overwhelmingly shows that these systems work.

• Reduced Accident Frequency: Research body Thatcham Research, which conducts safety testing and influences UK insurance group ratings, has published extensive data on the effectiveness of ADAS. Their studies show that cars fitted with Autonomous Emergency Braking (AEB) are involved in approximately 38% fewer rear-end collisions at low speeds.
• Mitigating Human Error: The Department for Transport's road safety statistics consistently show that human error is a factor in over 90% of all road traffic accidents. ADAS acts as a crucial co-pilot, intervening to prevent common mistakes caused by distraction, fatigue, or misjudgment.
• Lower Severity of Claims: Even when an accident isn't entirely avoided, systems like AEB can significantly reduce the impact speed. This often leads to less severe vehicle damage and, crucially, a lower risk of serious injury to occupants and third parties.

Insurers are not blind to this. The Association of British Insurers (ABI) has acknowledged the potential of ADAS to make roads safer and has actively worked with Thatcham Research to integrate ADAS performance into the insurance group rating system. A car with a highly effective, standard-fit AEB system will typically be placed in a lower insurance group than an equivalent model without it.

The Reality Check: Why ADAS Can Sometimes Increase Insurance Costs

Despite the clear safety benefits, many drivers are surprised to find that owning an ADAS-equipped car doesn't automatically slash their insurance bill. In some cases, it can even contribute to higher costs. This paradox is rooted in the cost, complexity, and calibration of the technology itself.

1. The Soaring Cost of Repairs

The primary issue for insurers is the dramatic increase in the cost of repairing even minor damage. The sensitive components that make ADAS work are often housed in vulnerable parts of the car.

• Windscreens: A simple windscreen chip or crack used to be a straightforward, relatively cheap repair. Today, windscreens often house cameras and sensors for lane-keeping, traffic sign recognition, and AEB systems. Replacing one is no longer just a glass-fitting job; it's a complex technological procedure.
• Bumpers: A low-speed car park knock that might once have required a simple paint job can now damage multiple radar sensors and parking sensors embedded within the bumper.
• Wing Mirrors: Modern wing mirrors frequently contain cameras for 360-degree views and sensors for blind-spot monitoring. A clipped mirror can now cost hundreds, or even thousands, of pounds to replace.

2. The Critical Need for Calibration

This is the hidden cost that catches most drivers out. After a sensor is disturbed or a component housing it is replaced (like a windscreen or bumper), the entire system must be professionally recalibrated to ensure it functions correctly.

• What is Calibration? It’s the process of precisely aligning the ADAS sensors so they "see" the road and surrounding environment as the manufacturer intended. Even a millimetre of misalignment can cause the system to fail, brake unnecessarily, or steer incorrectly.
• Specialist Equipment: Calibration requires a dedicated workshop space, specialist alignment tools, and diagnostic software specific to the vehicle manufacturer. Not every garage is equipped to handle this.
• Increased Costs and Time: A windscreen replacement that once took an hour can now take half a day, including the calibration process. This adds significant labour costs to the insurance claim, pushing up the total expense for the insurer.

Let's look at a simple comparison:

An insurer's premium calculation is a balance between accident frequency and accident cost. While ADAS is successfully reducing the frequency of claims, it is simultaneously driving up the average cost of each claim it doesn't prevent.

The UK's Legal Framework: Insurance and Safety Regulations

Understanding your legal obligations is the first step to managing your motor insurance effectively. It's also important to know how new regulations are making ADAS a non-negotiable part of modern driving.

Motor Insurance is a Legal Requirement

In the United Kingdom, under the Road Traffic Act 1988, it is illegal to use a vehicle on a road or in a public place without at least third-party insurance cover. Driving without valid insurance can lead to severe penalties, including a substantial fine, penalty points on your licence, and even disqualification from driving.

There are three main levels of cover:

1. Third-Party Only (TPO): This is the minimum legal requirement. It covers injury or damage you cause to other people (third parties) and their property. It does not cover any damage to your own vehicle.
2. Third-Party, Fire and Theft (TPFT): This includes everything in TPO, plus it covers your car if it is stolen or damaged by fire.
3. Comprehensive: This is the highest level of cover. It includes everything in TPFT but also covers damage to your own vehicle, even if the accident was your fault. It often includes windscreen cover as standard.

For businesses operating vehicles, whether a single van or a large fleet, the right business or fleet insurance is also a legal and commercial necessity. This protects the company's assets and covers liability for employees driving on company business. Expert brokers like WeCovr specialise in finding tailored policies for businesses, ensuring all legal duties are met.

General Safety Regulation 2 (GSR2)

As of July 2024, new EU and UK regulations known as GSR2 mandate that all newly launched car models must be equipped with a range of ADAS features as standard. This includes:

• Intelligent Speed Assistance (ISA)
• Driver Drowsiness and Attention Warning
• Emergency Lane Keeping System
• Reversing Detection with Camera or Sensors

This means ADAS is no longer an optional extra but a fundamental part of a car's architecture, making the issues of repair and calibration relevant to every new car buyer.

How Insurers Identify and Price for ADAS

When you request a motor insurance quote, insurers don't just guess what technology your car has. They use sophisticated data systems to understand a vehicle's specific risk profile.

• The ABI Insurance Group Rating: The core of this system is the Group Rating panel, administered by the Association of British Insurers. Cars are placed into one of 50 groups. A lower group number generally means a lower premium. This rating is influenced by many factors, including the vehicle's price, performance, security features, and, crucially, the cost and availability of parts.
• Thatcham Research's Role: Thatcham Research tests the effectiveness of a car's safety systems, particularly AEB. They provide 'E' (Exceeds), 'A' (Acceptable), or 'U' (Unrated) ratings for a car's safety features. A car with a standard-fit, 'E'-rated AEB system will benefit from a lower insurance group rating.
• Declaring Features: When getting a quote, it's vital to be accurate. Most comparison systems, including the advanced platform used by WeCovr, can pull detailed vehicle specifications directly from the DVLA database using your vehicle registration number (VRN). However, if you have optional factory-fitted safety packs, it's essential to declare them to ensure your quote is accurate and your potential premium reflects these features.

Understanding Your Motor Insurance Policy: Key Terms

To fully grasp how an ADAS repair affects you financially, you need to understand the core components of your policy.

No-Claims Bonus (NCB) or No-Claims Discount (NCD)

This is one of the most valuable assets for a driver. For every year you drive without making a claim, you earn a discount on your premium for the following year. This can build up to a significant saving, often 60-70% or more after five or more years.

• The Impact of a Claim: Making a fault claim, such as for damage to your own car in an accident, will typically result in the loss of some or all of your NCB. For example, a single claim often reduces a five-year NCB back down to two or three years, leading to a sharp premium increase at renewal. Even a windscreen claim can affect your NCB unless your policy specifically states otherwise.

Excess

The excess is the amount of money you have to pay towards any claim you make. It's made up of two parts:

• Compulsory Excess: This is a fixed amount set by the insurer. It's non-negotiable and often higher for younger drivers or high-performance cars.
• Voluntary Excess: This is an amount you agree to pay on top of the compulsory excess. Choosing a higher voluntary excess can lower your premium, but it means you'll pay more out-of-pocket if you need to make a claim.

Example: Your total excess is £500 (£250 compulsory + £250 voluntary). You have a minor accident causing £1,200 of damage to your bumper's ADAS sensors. You make a claim. You will pay the first £500, and your insurer will pay the remaining £700. However, you will also likely lose some of your No-Claims Bonus.

Practical Advice for Drivers with ADAS-Equipped Cars

Owning a car with advanced safety features is a positive step. By being informed, you can maximise the benefits while mitigating the potential costs.

1. When Buying a Car: Look beyond the sticker price. Research the insurance group of the specific trim level you're considering. A higher-spec model with more sensors could be in a significantly higher insurance group.
2. During Maintenance: Keep your car clean! Dirt, mud, snow, or even dead insects on the windscreen or bumper can obstruct sensors and cause ADAS features to malfunction or switch off. Read your owner's manual to understand where the key sensors are located.
3. After an Accident or Damage: Insist on an insurer-approved repairer that is certified to work on ADAS and has the correct calibration equipment. Look for garages that adhere to the British Standard BS 10125, which governs safe and technically sound vehicle body repairs. Using a non-specialist could invalidate your warranty and, more importantly, result in a safety system that doesn't work when you need it most.
4. When Claiming: If you need a windscreen replacement, check if your policy's glass cover includes the cost of recalibration. Some cheaper policies may not, leaving you with a large bill.

ADAS in Commercial Vehicles and Fleets

For business owners and fleet managers, ADAS and telematics are transformative technologies. The benefits extend beyond just insurance premiums.

• Duty of Care: Fitting vehicles with ADAS helps companies meet their legal duty of care to ensure the safety of employees driving for work.
• Reduced Downtime: Fewer accidents mean vehicles spend more time on the road and less time in the repair shop, improving operational efficiency.
• Lower Running Costs: Features like Adaptive Cruise Control can help promote smoother driving, leading to improved fuel economy across a fleet.
• Data-Driven Risk Management: When combined with telematics, ADAS provides a powerful data set. Fleet managers can identify risky driving behaviours and provide targeted training, while insurers can use the data to offer more accurate, usage-based fleet insurance premiums.

Structuring a fleet insurance policy that correctly values this technology is a specialist task. As a broker with deep expertise in the commercial motor sector, WeCovr helps businesses leverage their investment in safety to secure the best possible motor policy terms.

The Future of ADAS, Autonomous Driving, and Insurance

The technology is not standing still. The systems in today's cars are stepping stones towards fully autonomous vehicles. This transition will pose fundamental questions for the motor insurance UK market.

• Shift in Liability: The Automated and Electric Vehicles Act 2018 has already begun to lay the groundwork for a future where, if a car in a designated autonomous mode has an accident, liability may shift from the "driver" to the insurer of the vehicle, who can then potentially claim from the manufacturer.
• The Role of Data: In the future, your insurance premium might be less about your personal driving record and more about the safety record of the software running your car. The secure sharing of vehicle data between manufacturers, drivers, and insurers will be key to creating fair and accurate premiums.

This evolution is ongoing, and the insurance industry is adapting. Staying with a knowledgeable and forward-thinking provider or broker is the best way to ensure your cover keeps pace with your car's technology.

Frequently Asked Questions (FAQ)

1. Will my car insurance definitely be cheaper if my car has Autonomous Emergency Braking (AEB)?

Not necessarily. While a standard-fit, effective AEB system will usually place a car in a lower insurance group, the final premium depends on many factors. The high cost of repairing and calibrating the AEB sensors after even a minor accident can offset the savings from a reduced accident risk. Insurers are balancing lower claim frequency against higher claim costs.

2. Do I have to tell my insurer about all the ADAS features on my car?

Yes, it is crucial to provide accurate information. Most insurers can identify standard-fit features from your vehicle registration number. However, if you have optional safety packs, you must declare them. Failing to do so could be considered non-disclosure and might lead to your insurer rejecting a claim or voiding your policy.

3. Why did my windscreen replacement cost so much and affect my insurance?

If your windscreen houses a camera for systems like Lane Keep Assist or AEB, it requires specialist recalibration after replacement. This process is expensive and time-consuming, significantly increasing the cost of the job. While many comprehensive policies have separate windscreen cover, a high-cost claim may still be registered on your record and could impact your No-Claims Bonus or renewal premium depending on the policy terms.

4. Can I use any garage to repair my ADAS-equipped car?

It is strongly advised to use an insurer-approved garage that is certified for ADAS repairs and calibration. These workshops have the specific diagnostic tools, a controlled environment, and trained technicians required to ensure the systems are restored to manufacturer standards. Using a non-specialist garage could compromise your safety and invalidate the vehicle's warranty.

The world of ADAS and its impact on car insurance is complex. While the dream of safer cars leading directly to cheaper premiums hasn't fully materialised due to high repair costs, these systems are undeniably making our roads safer.

The key is to be an informed consumer. Understand the technology in your car, choose your insurance policy carefully, and insist on expert repairs.

Ready to see how your vehicle's safety features stack up?

At WeCovr, we are FCA-authorised experts who can help you compare motor insurance policies from a wide panel of UK insurers. Whether you need private car, van, motorcycle, or specialist fleet insurance, our service is at no cost to you. We can help you find a policy that provides the right protection for your modern vehicle.

Get your tailored, no-obligation motor insurance quote from WeCovr today.