Learn More About Driverless Cars And Insurance

Movies on science fiction have attracted the people for generations together. But with passage of time, technology has changed and is still changing fiction into reality. One such tangible achievement is self-driving cars on the roads. It is estimated that 10 million cars will be outfitted with self-driving features by 2025. Self-driving cars have various automation levels. The best level is achieved when these cars would operate entirely on their own without any intervention from the drivers. If this happens, it is expected that these cars would reduce the number of collisions, thereby bringing down the risk premiums. 

A few aspects of auto insurance of self-driving cars will be impacted as they become the norm of the day. There will still be a need for liability coverage, but over time this could change, as manufacturers and suppliers will be called upon to take responsibility of what went wrong. Coverage of physical damage due to crash and for losses caused by floods and other natural calamities and by theft are less likely to change but may become cheaper if the potentially higher costs to repair or replace damaged vehicle is more than offset by the lower accident frequency rate.

In self-driving cars auto insurance, insurers may try to rely more on telematics devices known as ‘black boxes’ that monitor driver activity. The ground making transition from man to machine led driving will undoubtedly affect how auto and insurance industries view auto coverage. Currently driverless cars are projected to reduce insurance costs by 30%. 

Insurance companies need to recognize the change and evolve now. Depending on level of autonomy, driverless cars may be perceived as being reliable, which means we may need a different type of auto insurance for self-driving cars. Coverage may have to adapt to recognize risks, such as who will assume responsibility for liability.

The automated driving insurance groups have come up in certain countries like USA. They will work with the government on shaping the future of automated vehicle use in the country. The group consists of various representatives of motor insurers. It will work upon researching systems to provide insight into potential risks and benefits at each step of the way towards a world where cars can drive themselves.