Why Your Extra-Safe Car Costs More to Insure

“I was told by the car dealership all the technology would improve the cost of insurance,” Mr. Woods said. “Instead, it went up.” Volkswagen AG declined to comment on Mr. Woods’ experience but said it is “proud to offer advanced-safety technology systems on our vehicles.” Mr. Woods ended up negotiating a price reduction with State Farm. Insurance sticker shock is a blow to auto makers looking to increase adoption of high-tech safety packages, which can add thousands of dollars to the price of a new car and deliver significantly higher margins than other options.

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