Here’s How Self-Driving Cars Will Impact the Automobile Insurance Industry in the Future

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Heres How Self-Driving Cars Will Impact the
Automobile Insurance Industry in the Future
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• A self-driving car might sound like a gadget
  straight out of a sci-fi novel. Yet, with leading
  automobile manufacturers like BMW investing in
  self-driving technology and research, these
  futuristic cars could soon be a reality. In fact,
  industry experts predict that these smart
  vehicles could very well be up and running by
  2040.
• Self-driving cars will no doubt revolutionize the
  automobile industry. But, what about their
  effects on
• insurance for car ? Will there be any impact? To
  find out, lets look at how self-driving cars
  will affect the automobile insurance industry in
  the near future.

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• A change in liability
• A self-driven vehicle is one that can get from
  point A to point B without a human driver. In
  such a scenario, if an accident occurs, who
  really assumes liability? According to industry
  experts, the liability might switch over to the
  manufacturer. This might be hard for some to
  believe. However, auto industry giants like Volvo
  already accept liability when their cars
  self-driving system is at fault. Moreover, human
  error is to blame for a whopping 94 of accidents
  so, perhaps the number of road mishaps will
  steadily decline when self-driving technology
  takes over. Therefore, manufacturers may not have
  any qualms about taking liability for their
  vehicles.

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• The kind of insurance needed
• The arrival of self-driving cars is bound to see
  a drop in the number of road accidents. If you
  take the human out of the equation, artificial
  intelligence systems may actually be able to
  navigate routes and situations with close to 100
  accuracy through their advanced systems. This may
  leave many wondering whethercar insurance will be
  required at all.
• The answer to that is a resounding yes.
• A self-driving vehicle will still face the
  possible risks of damage from man-made disasters
  such as riots, natural calamities such as floods,
  as well as incidences of fire, and theft.
  Furthermore, there may be occurrences of
  malfunction that could lead to mishaps.
  Technology may evolve but insurance will always
  play its part in ensuring that you have a
  financial safety net incase things go awry.

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• Lowered costs of premiums
• Many auto industry experts are also of the
  opinion that the arrival of self-driving cars
  will see car insurance premiums drop. And, there
  is a reasonable explanation for this belief.

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• When vehicles are powered by artificial
  intelligence, there will be a lowered risk of
  road accidents. This effect can already be seen
  in cars that are fitted with autonomous driver
  assistance systems. Cars with these features have
  been reported to face a much lower chance of
  being involved in road mishaps. Some of these
  features include lane change assist, forward
  collision warnings, pedestrian alert systems, and
  lane keep assist, among others. With the added
  safety that these autonomous systems offer, car
  insurance providers face much lesser chances of
  being hit by claims. So, in turn, they lower
  their premium rates.

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• By that logic, the arrival of self-driving cars
  may result in insurance providers slashing their
  prices to attract customers while also ensuring
  that coverage is accessible and affordable as an
  essential product for vehicle owners.
• Till the first truly independent self-driving car
  hits the road, we can only speculate how the
  future will be. Yet, what we do know is thatcar
  insurance is a must-have financial product for
  every vehicle owner, now and in the future too.
  Good coverage for your vehicle will let you drive
  at ease without having to worry about paying
  through your nose if a mishap occurs. We hope
  this article has been informative. Drive safe.

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• THANKYOU