Driverless Cars and the Insurance Industry
By Henry Glover on March 05, 2019
Self-driving cars sounds like something from a futuristic sci-fi movie, but it could be more normalized in our society in the next couple decades. Because of improvements in new technology, some experts predict that self-driving vehicles could be the norm by 2040. If the automobile industry changes that much, the auto insurance industry will have to keep up. We still have many years before this is a tangible possibility, but here are a couple ways driverless cars could affect the insurance industry. Lower Premiums Advanced driver assistance systems (ADAS) are becoming more common, and many insurers offer discounts for drivers with these features in their vehicle. This means that if your car has forward collision prevention and lane change alerts, you might already be offered a premium discount. Because the technology of self-driving cars has the potential to reduce accidents, similar discounts are expected. Liability If your self-driving car causes an accident, are you liable? Or is the car manufacturer liable because of a fault in their programming? For the time being, the latter seems to be the general consensus. Google, Volvo, Tesla and Mercedes-Benz have already set the precedent by accepting liability when a vehicle’s self-driving system was at fault for a crash. To read more about the adjustment period, potential problems and other considerations, see my blog at https://henrygloverbirmingham.com/how-driverless-cars-could-affect-the-insurance-industry/.