Driverless Cars: Impact on Your Auto Insurance

Driverless Cars: Impact on Your Auto Insurance

The growth of technology is visibly increasing over time. This is expected in the coming of the most awaited driverless cars to invade the thoroughfares. Think about your car without a steering wheel that must be controlled and no parking troubles to worry about. There will be no issue about having a drunk driver controlling the car while driving. The effect can be helpful to humans, particularly to car owners, but what about the state of auto insurance companies?

Based on statistics taken from the International Organization for Road Accident Prevention, the usual cases of car accidents caused by car owners and drivers reach 90%. In case the driverless cars will fix most of the human errors in driving, what will the impact be on the insurance industry?

It’s also anticipated that there will be more responsibilities on the part of the manufacturers as opposed to the driver. It brings in more tricky situations if the driver and the automobile share driving accountabilities.

It’s good to have the optimistic opinion that fewer accidents will happen on the road, but to fix this current type of car will surely require higher cost of repair, including its regular maintenance. Some coverages are likely to go down, others are likely to go up. So it is unclear what the net effect will be on auto insurance.

Car insurer’s outlook on driverless cars

How auto insurers take this issue about self-driving cars and how insurers view them? For the insurance plan that covers the self-driving car policy, underwriters will just highlight the new car models and how they are manufactured. Underwriters won’t bring the accidents and the mistakes of drivers and all the history of car and road mishaps so much.

Moreover, there’s a big chance for car owners to be acquainted with black boxes. These boxes are the information recorders much similar to those being used in airplanes. They are data recorders that keep track of the information. They can be used to identify the real incident before any car accident will happen. Whatever the possible outcome, the issue will not fade away immediately.

Impact of driverless cars to insurance companies and the rates

Think about the causes why accidents do not leave the roads: speeding, emotional driving, drugs & alcohol, failure to remain in the right lane, disturbed driving, and others. However, these problems can be taken away with an autonomous car.

To really feel the good impact, ponder on the auto insurance rates for drivers charged with driving while intoxicated (DWI) case. The negative effect can double or triple the driver’s premium reaching up to 5 years. On the other hand, a self-driving car can significantly lower those burdensome premiums. The introduction of driverless cars to the thoroughfares will test the feasibility of the adjustment in policy insurance. One thing for sure, there will be a new approach to the system of auto insurers.

The normal car insurance relies mainly on the high risks. Most of the policy costs have something to do with the owner and driver like their experience, age, convictions, previous claims and others. If these factors will be taken out, then self-driving cars will result into much lower premiums than the traditional autos. If the automated cars become operational, they can eliminate the multiple incidents of road accidents and collisions.

Because of the high risk in road accident, the potential security of the driverless cars will be a huge solution. This is where insurers will provide new proposals. Underwriters will ensure that the use of higher technology will demonstrate lower risks. More research studies about the benefits of the self-driving cars must be cautiously done.

The best presumption today is that car insurer rates—for the initial bulk-produced cars—will be around 25 to 35% less, compared to the existing cars with drivers. The drop will go on progressively while the real experience proves that the latest technology is really at work. There’s a possibility that the drop will reach down to 75% within the period of 15 years while technology continues to improve.

Today, the car insurance industry is working well with the car manufacturers, government, legal community, regulators and repair centers to deal with this new life-saving and life-changing technology. More research efforts and further tasks are being invested to know the complete advantages of driverless cars. We will see, eventually, how the driverless cars will work their system on the road and how the insurance market will gain or lose from them.

Driverless cars approved for testing in Florida’s public highways

The state of Florida is one of the states where driverless cars are approved for testing. The Audi Connect system has made its way for the drive testing to Tampa. It has closed the reversible lanes of Lee Roy Salmon Expressway. The testing control is more of an assisted driver practice rather than the entire driverless test.

More particularly, such testing is for the dry run of pilotless car controls during some traffic crowding. Researchers say that in the future, self-driving cars will be an effective tool to simplify the chaos in traffic and collisions. Audi A-7 has the built-in 22 sensors designed to detect cars in front and at the back of the self-driving cars.

The broad expressway connecting the Tampa downtown to Brandon makes the perfect testing roads. This is an excellent site for researchers to study about the performance, use and safety of self-driving cars.
These cars and infrastructures must have the right ultimate fitting. This life-saving technology will surely produce security measures that will save human lives.

To know more about driverless cars and impact on your auto insurance, please contact us at DMG Insurance and Financial Services, Inc. ( ) at 543 N state Road 7, STE 106, Royal Palm Beach EL, 33411, phone 561 422 7071 , Fax 561 422 7072.

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