Driverless Cars Spell Big Changes for the Insurance Industry
WILL FEWER ACCIDENTS LEAD TO LOWER PREMIUMS?
in cars that still require drivers, advanced driver assistance systems (ADAS) are already
Ten years ago, self-driving cars seemed like science fiction. Today, they’re poised to become a factor of daily life for pretty much everyone in America. But how will these autonomous vehicles affect the insurance industry? Well, for one thing, it seems like liability is going to steadily shift away from human drivers and squarely onto the shoulders of automakers. In fact, with Google, Volvo, Mercedes-Benz, and Tesla already accepting liability for self-driving vehicle crashes, this reality is already here. But as the kinks are ironed out in technology, proponents believe that insurance liability will become a much less serious problem for these manufacturers. If you take into account the fact that 94 percent of accidents are a product of human error, it makes sense that implementing machines would drastically cut down on collisions. Though, of course, any skeptic will tell you that this remains to be seen.
preventing many types of accidents from occurring almost completely, leading some insurers to offer steep discounts for ADAS features.
Some experts even believe that by 2040, accidents will become so rare that many individuals may stop carrying car insurance altogether. We may be biased, but it seems difficult to imagine a world in which full coverage isn’t preferred, if not mandatory. Still, if it means fewer accidents on the road, we’re all for it.
Some people may expect insurance premiums to actually drop as autonomous vehicles take over the road, at least in the long run. Even
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