If Elon Musk succeeds, a self-driving car is in your near future. In fact, some predict that by the year 2034 ten percent of U.S. total vehicle sales will be for self-driving cars. It may seem a long way away, but fourteen years goes by quickly. It is well-within most of our lifetimes.
Some say that self-driving cars will solve the distracted driver issue that plagues the U.S. This means that cell phone use while driving may no longer be the killer it is today.
But as we rapidly head towards self-driving vehicles, what does this mean for the auto insurance industry? Will there be no more accidents? Or very, very few accidents? Is this a death blow to the auto insurance industry?
Well, likely not. But self-driving vehicles will no doubt change the U.S. auto insurance landscape. Here are some thoughts.
The future of car insurance and self-driving cars
Auto insurance companies will feel an impact due to autonomous, or self-driving, cars. The whole car insurance model is based on accidents, meaning the more you have the more you pay. If a lot of the risk of driving is removed, insurance companies will no longer be making big payouts, and this should impact your premium.
Of course, it sounds like it’s a slam-dunk. Prices are going to go down.
Not so fast!
Some industry experts say that rates will likely stay the same or eve rise because of several factors. First, insurance companies will find the risk. There is risk in everything and what will likely happen is that premiums for other types of damage will rise. For instance, storm damage or vandalism or theft will now be the major reasons your insurance company must pay out.
Other types of insurance will likely be needed also, such as cybersecurity insurance to protect against losses due to someone hacking into your vehicle’s onboard computer.
Second, self-driving cars are simply technology on wheels. And, the price tag to fix these cars is certainly higher than the standard, and now old-fashioned, combustion engine. You could see insurance for faulty computers (hardware and software) also.
While the great debate is ongoing about the fate of the auto insurance industry as self-driving cars become a larger and larger percentage of vehicles on the road, you still need auto insurance, whether your car is self-driving or not.
Fill out a few details on the InsuranceWins form and we’ll help you find the best deal for the type of coverage you need. We’ll do the shopping for you and hook you up with quotes from companies you know. Give it a try today!
