Auto Insurance And Driverless Cars

18 02 2016

Dale BertramWe all have to pay our auto insurance premiums and we see the humorous commercials on television, online and hear them on the radio.  What will become of auto insurance when self-driving cars become the normal?  Consider these facts:

  • Self-driving cars should mean accidents would drop to about 1%.
  • The liability should move from the drivers’ to the cars’ software system or automaker.
  • Consumers would still need insurance but more to cover theft and damage from mother nature.

Mercedes, Volvo and Tesla are already working towards crash-avoidance systems.  Advisory and research firms are predicting that in twenty to thirty years, personal auto insurance firms will shrink considerably…maybe to half the size they are now.

Some insurance companies are thinking about how they would survive should autonomous vehicles become the new normal.  One firm says it has collected an amazing amount of data on consumers and would hope to become a “life management” company and offer advice.  Hmmm…

Research firms predict that insurance companies will have to learn to make a huge adjustment and make plans to become a lot smaller.  Their current cost structures include large buildings, huge marketing/advertisement budgets and massive work force (agents, adjusters, and many more jobs related to insurance), not to mention all those that collect the data they use to target consumers.

It will be interesting to see where all of this is headed.  Stay tuned…

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Fairway Auto Repair

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