ADAS: The Safety Technology That’s Driving Your Car Insurance Up

Advanced Driver Assistance Systems (ADAS) are revolutionizing vehicle safety—but they’re also quietly increasing your car insurance premium. As we move through 2025, these high-tech features are more common than ever, found in everything from entry-level sedans to luxury SUVs. While ADAS helps prevent accidents, it also makes vehicle repairs more expensive—and insurers are adjusting premiums accordingly.

ADAS includes features like:

• Adaptive Cruise Control
• Automatic Emergency Braking (AEB)
• Lane Departure Warning and Lane Keep Assist
• Blind Spot Detection
• Collision Avoidance Systems

These systems rely on complex hardware: cameras, radar sensors, ultrasonic modules, and onboard computers that must be calibrated precisely. When a vehicle with ADAS is involved in even a minor accident—like a bumper tap or curb strike—the costs can quickly escalate. Replacing a sensor, recalibrating the radar, or reprogramming the vehicle’s computer can cost thousands.

For insurers, this translates to higher average claim payouts. As a result, premiums for ADAS-equipped vehicles are increasing 10–15% faster than for vehicles without these systems. The average full-coverage premium for a car with ADAS in 2025 is estimated at $2,400–$2,600 per year.

Ironically, some drivers are disabling ADAS features due to over-sensitivity or distraction, such as frequent alerts or braking interventions. This creates a coverage dilemma: when safety features are turned off, the driver assumes more risk—but insurers still face high repair costs if an accident occurs. Insurance companies are beginning to factor this into policy evaluations, potentially leading to future surcharge models for deactivated systems.

At the same time, privacy concerns around usage-based insurance are growing. Some drivers are embracing telematics programs that reward safe habits, while others reject data tracking. This divide is leading insurers to introduce new hybrid policies—ones that incorporate ADAS safety data without requiring full GPS or app-based monitoring.

How to Minimize ADAS-Driven Insurance Costs:

• Choose vehicles with ADAS features that are easy and inexpensive to repair.
• Ask your insurer if they offer discounts for ADAS safety.
• Keep all features enabled and properly calibrated.
• Compare insurers: some carriers now specialize in ADAS-equipped vehicle coverage.