Fleets to save big as Volvo City Safety technology sends insurance premiums tumbling
By Kyle Lindsay
Wednesday, July 24, 2013 - 14:00
CRASH: Cutting-edge Volvo City Safety technology
Companies could make huge insurance premium cutbacks with Volvo City Safety technology, figures show.
Thanks to Volvo’s standard Autonomous Emergency Braking (AEB) system, drivers could see insurance premiums fall by more than £100.
This is because Volvo car models have had their insurance groupings reduced by up to four levels, saving consumers up to £161.81 per year.
Fitted to more than one million Volvos worldwide, the system has been praised by Thatcham for its ability to help drivers avoid low speed crashes.
Nick Connor, Managing Director of Volvo Car UK, said: “With City Safety AEB now fitted as standard across all new production Volvos except the XC90, it’s fantastic to see the technology recognised by Thatcham, ultimately allowing Volvo drivers to enjoy big cost savings on their insurance.
“The continued introduction of all these lifesaving technologies links back to our Vision 2020 long term objective that by 2020 no one should be killed or injured in a new Volvo.”
Tristar Worldwide, a Middlesex-based global chauffeur drive company, have saved big since upgrading much of their 500-strong fleet to the latest Volvo models in September 2011.
First year repair costs fell 56% to just under £270,000, from £350,000, while third-party insurance costs plummeted 71%, saving £260,000.
Hire costs were also reduced, by £65,000.
Janusz Kozlowki, Fleet Manager of Tristar Worldwide, said: “Our drivers work predominantly in urban areas and have suffered from numerous minor cases of causing rear end shunts which generate repair, hire car and potentially expensive personal injury costs.”
Thatcham have proven that City Safety have reduced accident rates and relevant repair costs since its XC60 launch in 2008.
It also prevents expensive personal injury claims for whiplash caused by low speed rear end shunts.
The European Commission have suggested widespread adoption of AEB could reduce accidents by up to 27%.
This potentially saves 8,000 lives a year and reduces insurance claims by up to £6.3billion.
In the future it could also be ‘practically impossible’ for car models to obtain an NCAP five-star rating without this technology fitted.
Howard Barron, Rating Manager at Thatcham, said: “Our Crash & Safety team have conducted rigorous AEB testing on all new Volvos fitted with their City Safety AEB technology, in line with our insurer ratified AEB testing protocol.
“As a result of the successful testing we have been able to recommend to the ABI’s Group Rating panel an adjustment in these Volvo model’s insurance grouping.
“For consumers this should mean reduced insurance premiums and safer motoring, not just for themselves but also other road users.”