Volvo system to reduce premiums?

Insurer NRMA says Volvo's latest softroader could be up to 20 per cent cheaper to insure than comparable vehicles.

NRMA Insurance's Head of Research, Robert McDonald, says Volvo's new City Safety, standard equipment on the new XC60, has the potential to dramatically cut nose-to-tail accidents.

"We are very confident that the technology will reduce the likelihood of the XC60 being involved in a collision. This is set to be reflected in our pricing, and we would estimate that the cost of an insurance premium for this vehicle will be up to 20 per cent cheaper than it would be if it didn't have the technology," McDonald said in an NRMA statement last week.

Due to go on sale next month -- with a local media launch this week -- the XC60 is the first production Volvo to feature City Safety.

The system uses sensors mounted on the windscreen to slow or stop the car if it extrapolates that the driver won't brake in time to avoid colliding with the car ahead.

"While there's no substitute for good driving and concentration, this technology could lead to a dramatic decrease in the number of rear-end collisions," McDonald commented.

"We believe this technology is a practical step forward in tackling the problem of rear enders... Other collision mitigation systems currently available are usually part of the cruise control system and do not operate at common collision speeds. The technology from Volvo, however, is always operational and works for speeds up to 30km/h -- the range at which the majority of collisions occur."

The NRMA's endorsement comes only days after the system was awarded the 2009 Paul Pietsch Award by leading German publication 'auto moto und sport'. The award recognises technical developments that represent significant and lasting change to the automobile.

Look out for our local launch coverage of the Volvo XC60 soon...