Insurance premiums could fall significantly due to automated vehicles
Self-driving cars could help save motorists money on auto insurance coverage, according to insurance startup Metromile. The company has released a new report that suggests that drivers could save as much as $1,000 a year on coverage due to automated vehicles. These cars could cost as little as $250 a year to insure, and they may serve as a disruptive force for the auto insurance industry in the coming years.
Self-driving cars are not subjected to human error in the same way that conventional vehicles are
Automated vehicles have as close to a perfect driving record as is possible to obtain. According to Google, the pioneer of self-driving cars, the vast majority of accidents that these vehicles are involved in are a result of human error, rather than the technology driving these vehicles causing a problem. As a result, auto insurance premiums are expected to dramatically fall in the coming years as more of these vehicles become commercialized.
As automated vehicles become more popular, liability is beginning to shift in the auto insurance industry
Human error is the primary cause of most vehicular accidents, with distraction being one of the main causes of these errors. Because automated vehicles are not subject to human error, as they drive themselves, they may cause a shift in the auto insurance industry. Liability may change in the coming years, as risks shift away from drivers. If an automated vehicle is involved in an accident, it could come down to technical errors, unless a human driven vehicle is involved in the accident itself.
Metromile helps diffuse auto insurance issues plaguing Uber
Metromile recently assisted in diffusing auto insurance concerns that had troubled Uber, a leading ride-share company. There were concerns that Uber had inadequate insurance coverage for its drivers, as this coverage would only be in effect when the company’s freelance drivers were transporting passengers. Metromile provides these drivers with supplemental coverage that is not based on whether or not drivers are actually transporting passengers at any given time.