Autonomous vehicles predicted to have a severe impact on the cost of auto insurance
Autonomous vehicles could have a major impact on auto insurance premiums in the future. While these vehicles are not yet readily available, insurers already see the potential disruption self-driving cars could have on the market. Self-driving vehicle take human error out of the equation, which is expected to significantly cut down on the number of accidents that are seen on the roads every year. This will lead to a dramatic decrease in auto insurance premiums in the near future.
Report forecasts the fate of the insurance market for drivers
PTOLEMUS, a strategy consulting firm, has released a new report that forecasts the impact that autonomous vehicles will have on the auto insurance sector. The report predicts that there will be 380 million semi, highly, or fully autonomous vehicles on the road by 2030. The technology behind these vehicles is expected to lead to a 30% reduction in accidents, which will lead to a reduction in auto insurance premiums.
Autonomous vehicles may lead to a shift in liability among insurers
Currently, autonomous vehicles represent a very marginal risk for insurers. In the coming years, however, insurers will need to overcome the challenges associated with these vehicles in order to find continued success in the auto insurance market. This may involve a shift in liability, as drivers will no longer be responsible for accidents. Instead, those behind the development of the technology used by autonomous vehicles may be held accountable for accidents, as such incidents would be caused by faults in hardware and software.
New technology is changing the way insurance coverage works
Automakers are beginning to use new technology to make vehicles safer and more enjoyable for consumers. This includes the use of augmented reality, which can be leveraged to highlight potential hazards while a vehicle is in motion. The wide range of technologies being used by automakers could have a drastic impact on the auto insurance market and insurers will have to find new ways to serve consumers or risk encountering serious financial losses that may be difficult to recover from.