Vehicle Safety Technology Is Not Causing Higher Automobile Prices: IIHS

Independent research suggests that convenience features, not modern safety designs, are responsible for the rising price of newer vehicles.

Despite the average new vehicle now costing around $50,000, reports show that models priced at roughly half that amount can still offer state-of-the-art safety engineering and comparable levels of protection.

The Insurance Institute for Highway Safety (IIHS) published the findings of this new research last week, in an article titled Sacrificing Safety Is Not the Way to Make Cars Affordable, which warns that rising vehicle prices are prompting many Americans to hold onto older cars that may lack the crash protection and safety systems found in newer models.

IIHS is a U.S. nonprofit organization that conducts vehicle testing, evaluates safety technologies, and publishes research and ratings aimed at reducing traffic injuries and fatalities.

According to the group, as vehicle prices have climbed in recent years, some federal policymakers have begun suggesting that safety requirements are too costly, pushing for the rollback of lifesaving technologies and limits on efforts to expand their availability.

Those affordability concerns were raised during a recent U.S. House subcommittee hearing on auto safety and innovation and are expected to resurface when auto industry executives testify before the Senate Commerce Committee. However, IIHS maintains that safety and affordability are not mutually exclusive, cautioning that weakening safety standards could have deadly consequences.

According to IIHS President David Harkey, automakers, safety advocates and lawmakers began focusing more seriously on reducing vehicle occupant risks in the 1950s, a shift that led to early breakthroughs such as the seat belt, which is credited with saving more than 450,000 lives between 1968 and 2019.

In the decades that followed, additional safety technologies were developed and, after demonstrating their effectiveness, were incorporated into federal safety standards as required equipment on new vehicles. These include frontal airbags, which had prevented an estimated 70,000 deaths by the end of 2019, and electronic stability control, which is credited with saving roughly 29,000 lives.

A 2019 analysis by the U.S. National Highway Traffic Safety Administration (NHTSA) concluded that the benefits of federal motor vehicle safety standards far outweigh their costs, generating about $23 in societal value for every $1 spent. While consumer compliance costs were estimated at $38 billion, the agency calculated that broader benefits, including economic savings and improved quality of life, totaled approximately $881 billion.

IIHS reports that rising vehicle prices are driven not by safety requirements but by consumer demand for convenience and luxury features, such as hands-free power liftgates, puddle lights and automatically retracting mirrors. The growing popularity of larger vehicles has also contributed to higher prices. For example, the Ford F-150 has a base price of about $39,330, while higher trim levels can exceed $70,000.

Even buyers who start with lower-priced models frequently add optional features unrelated to safety, quickly pushing prices upward, according to IIHS.

The 2026 Mazda 3, for instance, carries a base price of $24,550, but adding the Turbo Premium Plus package, which includes increased horsepower, upgraded wheels, a leather interior and a premium sound system, raises the price to $36,740. Additional options can drive the final cost to nearly $40,000.

“The average new vehicle today costs a whopping $50,000. But don’t blame safety: For half that amount, you can find a vehicle with state-of-the-art engineering to protect you and your family in the event of a crash as well as proven technologies to keep you from crashing in the first place.”

— David Harkey, President, IIHS-HLDI

IIHS 30×30 Campaign

Despite the widespread adoption of both mandatory and add-on safety features, the organization also indicates that traffic fatalities remain a serious concern in the U.S., with road deaths continuing to trend upward. In response, IIHS is reminding Americans that it has launched its 30×30 vision, in an attempt to reduce road deaths by 30% by 2030.

The IIHS 30×30 initiative aims to cut down on dangerous driving habits, advance safety standards for commercial vehicles, and expand roadway protections to benefit all users.

As part of that effort, the nonprofit intends to keep creating research-based resources for safety groups and transportation officials, working with state and local partners, and evaluating vehicle technologies that may help encourage safer driving behavior.

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