Introduce insurance for Smart Cars technology is nothing new. Introduction of Smart Vehicles and driverless is no longer and idea in future but it already release in this year 2019 by General Motors because they plan to release its own driverless vehical, which has no steering wheel or pedals, for commercial ride services, along with other automakers. As anticipated, the emergence of self-driving cars isn’t exactly striking up a love connection with auto insurers. Here, we take a closer look at three key issues concerning self-driving cars and the possible impact on the auto insurance industry.
Who gonna pay if accident
Without an actual human being sitting behind the wheel, one of the biggest concerns regarding driverless cars will be when an accident occurs. When two cars are involved in a collision, so who is responsible for expenses in an accident in which the driver is a computer? Some speculate that insurance responsibilities will begin to shift from the insured to the vehicle’s manufacturer and tech company; however, the jury is still out on this issue.Earlier this year, when a pedestrian was killed by a driverless Uber vehicle. In that instance, Uber covered all expenses associated with the accident. For now, most reports indicate no changes will be made to how auto insurance is structured, and coverage will continue to be held by the owner of the vehicle regardless of who (if anyone) is driving.
The Possibility of Higher Premiums
Insurance premiums reflect risk. Therefore, fewer accidents typically result in lower rates. If driverless cars hit the road and cause an onslaught of accidents, consumers might possibly see an uptick in rates. On the flip side, if driverless cars can help reduce risks, it stands to reason that rates may not be significantly affected. According to statistic, 95% of serious auto accidents are caused by human error as opposed to mechanical and road condition issues. The proposed argument is that new driver assistance technology that is being built into driverless cars may actually create safer roadways, with features such as autonomous emergency braking.
Drop in Coverage Needs
Albeit a stretch, the increase of driverless cars may result in more consumers reducing or even dropping their auto insurance policies. This concern is built on the premise that auto manufacturers and the tech companies producing driverless cars will begin to self-insure their own products. As more consumers purchase these cars, the need for coverage may be eliminated or replaced by a type of micro-risk policy.
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