Advancements in car technology have opened a new avenue for cybercriminals to wreak havoc on drivers. Self-driving cars, electric vehicles, connected cars, and electronics plugged into the vehicle can malfunction if a hacker manages to crack the code. The auto insurance industry is aware of this threat, and we have investigated whether auto insurance coverage in Iowa has been adjusted to account for this alarming trend.
Does Auto Insurance Cover Cybercrime?
Cybercrime coverage is more prevalent in the commercial auto insurance industry. Few partner carriers in the personal auto insurance industry offer protection against vehicle cybercrime, primarily because these threats are relatively new. However, we at Brown-Hurst Insurance Agency Inc. encourage you to inquire about it.
Auto insurance companies that offer this coverage may refer to it as "cyber for auto" or a similar term. These are add-on riders that cover viruses, malware, ransomware, identity theft, and cyber attacks. They cover labor, towing, transportation expenses, and more to recover identity and repair affected auto systems. However, they do not cover injuries, property damage, and vehicle damage caused by cybercrime. Standard auto insurance will cover these instead. Coverage for data breaches is less certain.
Why is This Coverage Needed?
Modern cars contain approximately 100 million lines of code, which are written into the vehicle to manage and control various parts. They may also rely on phone apps for operation. If hackers gain control of the code or phone app, they can lock you out of the car, disable the vehicle, or send false notifications to mislead you. This can lead to accidents and instill fear and confusion in drivers.
Cyber threats and attacks are extending beyond the internet, threatening every technological advancement we use in our vehicles. Brown-Hurst Insurance Agency Inc. is at the forefront of addressing this issue. Car technology exists to simplify our lives, so don’t let hackers complicate it. Visit our office in Iowa or contact us for more information.
