IIHS says safety not driving high vehicle prices

Insurance Institute for Highway Safety (IIHS) president David Harkey has argued that safety features are not the primary factor behind rising new vehicle prices in the US, noting that several models priced under US$30,000 earn the organisation’s highest safety rating. Writing in response to recent discussions at a US House subcommittee hearing on auto safety and affordability, Harkey said vehicles including the Mazda 3, Hyundai Kona, Honda Accord, Toyota Camry and Subaru Forester all achieve the 2025 IIHS Top Safety Pick+ award while starting below US$30,000.

Harkey said the main drivers of higher vehicle prices are convenience features such as hands-free power liftgates and premium audio systems, as well as consumer preference for larger vehicles. He cited a 2019 National Highway Traffic Safety Administration analysis showing that the societal value of federal motor vehicle safety standards outpaced their cost to consumers by a ratio of 23 to one.

The IIHS president cautioned against abandoning safety development efforts, noting that the US lags behind other developed nations in reducing traffic fatalities. He referenced the organisation’s 30×30 initiative, which aims to cut US road deaths by 30% by 2030.

Harkey said automakers should look for ways to reduce costs, adding: “Giving up on safety progress will have very real costs, in terms of both dollars and lives.”

Source: IIHS