VIN Basics Blog

The auto insurance industry, after several years of experiencing unprecedented increases in loss ratio, managed to stem the tide in 2023 by posting a 104.9% mark, a 7% improvement from the prior year that still remains as a net loss. As these organizations continue to see business in the red, owner behavior is shifting in a manner that could easily see a return to loss increases. According to LexisNexis, high claim severity persists, and increased EV sales (up 54% year-over-year) could also inflate loss due to their increased susceptibility to total loss.

Vehicle technology is increasing in complexity besides EVs, and that complexity is a prime driver in added repair and claim costs. A recent AAA report that repairs focused on Advanced Driver Assistance Systems (ADAS) make up over 37.6% of repair costs after a crash. The industry-wide trend toward full vehicle automation is also fundamentally shifting risk from the driver to the car, and insurance risk modeling has not yet caught up to satisfactorily factor this in. McKinsey writes that this “connected revolution” in the automotive industry “means insurance coverage will likely need to shift from drivers to the automakers and software companies responsible for the development and maintenance of various autonomous-driving technologies.”

A successful transportation business in today’s fast-paced and competitive climate requires the most efficient and cost-effective business processes. Advances in vehicle technology, including advanced driver-assistance systems (ADAS), telematics, GPS tracking systems, and dash-cam tech have revolutionized the way these businesses operate with the ability to lower vehicle risks and better maintain their fleets. Here are four ways in which advanced vehicle technology is improving transportation businesses.

In previous articles of this ADAS blog series, we discussed the increasing prominence of ADAS and its impact across the auto industry, as well as some of the challenges with these advanced safety technologies. As ADAS systems continue to grow in their prominence, with a solid amount of data accumulated over the last few years to prove their efficacy, as well as their limitations, manufacturers are constantly looking for ways to improve these systems and prevent even more accidents.

This article includes some of the significant trends shaping the future of ADAS as the auto industry works to transform automotive safety and autonomous driving.

* This article was a collaboration with our partners Joseph Creese and Howard Abbey at SBD Automotive.

Advanced Driver Assistance Systems (ADAS) technology is confusing for consumers and businesses alike. While there are core ADAS features that can function similarly across each OEM, such as forward collision warning, lane keeping, or blind spot monitoring, each OEM offers their unique spin on the different technologies and markets them differently with their own branded names.

While it’s no surprise that ADAS (Advanced Driver Assistance Systems) has taken the auto industry by storm, there are still many uncertainties when it comes to how your business will be impacted. There are several benefits to these new features, including increased safety and convenience for drivers, and concerns, such as costly repairs, making ADAS a very complex topic that even those selling, insuring, and repairing these features will require clarification on.

In this article, we’ve covered how some auto industry segments have been impacted by ADAS. Read on to learn more.

In the last ten years vehicle technology, specifically in regard to safety features, has become increasingly complex. These advanced vehicle safety features are often bucketed under the category “Advanced Driver Assistance Systems,” more commonly known as ADAS. While the key motivator of this growth has been driver safety, ADAS will play a larger role for those on the business side of automotive in everything from data collection to lending to titling over the next few years. Some of the most popular ADAS features are: braking assist, adaptive cruise control, lane departure warning, blind spot detection, and rear cross traffic alert.

Advanced Driver Assistance Systems, aka ADAS, are a hot topic in the auto industry, especially as these safety features become more widespread across manufacturers and their model lineups. Whether your business is in the retail, insurance, auto repair/service, or logistics space, you’ve likely been impacted by ADAS in some way, shape, or form.