Driverless cars are coming. Exactly when is yet to be determined, but the technology is improving so rapidly that we’re already seeing the technology being used one piece at a time. Have you seen a car park itself yet?
What does this mean for auto insurance premiums? Well, for the time being, not much. But insurance companies are taking notice.
To begin with, the most important aspect (at least from the insurance side of things) is that an automated car doesn’t get distracted. Distracted driving is the leading reason why accidents happen. From texting, drunk driving, daydreaming, or any other myriad of distractions, a self-driving car is definitely safer. Estimates suggest that 90% of car accidents will be avoided once driverless cars have become mainstreamed.
There are over 10,000,000 motor vehicle accidents every year and over 2,000,000 in which people end up with permanent injuries. That’s a whole lot of claims! Driverless technology will reduce those claims and, in turn, save lives.
With an improvement in safety, insurance rates will drop significantly. But before you get too excited about paying lower premiums in the future, it will take at least 20% of drivers to utilize driverless technology before we’ll see a reduction in accidents. And it will be a long time before the majority of vehicles are driverless. But once that does happen, there will be a reduction in car insurance premiums.
Do you think you’re paying too much for car insurance in California? Complete out our FREE online car insurance quote request and you might start saving on car insurance premiums, even without a driverless car.
Further reading and references about driverless cars and auto insurance rates:
http://www.forbes.com/sites/chunkamui/2013/03/28/will-auto-insurers-survive-their-collision-with-driverless-cars-part-6/
http://online.wsj.com/articles/driverless-cars-edge-onto-roadways-1407432414
http://www.nerdwallet.com/blog/insurance/2014/03/04/driverless-cars/
FOLLOW US:
