Driverless cars could lower car insurance rate
Innovations could lead to decreases in car insurance premiums by more than 60 percent in the 2020s from current levels. The advances include the increasingly prevalent driver-monitoring devices, collision avoidance systems and automated traffic-law enforcement, such as speed and red-light cameras, as well as robotic cars (Driverless cars).
The property and casualty insurance industry derives nearly 40 percent of its premiums from vehicle insurance, so driverless cars in particular could put a major dent in the sale of coverage for personal and commercial vehicles.
Driverless cars car insurance rate
If driverless cars become a reality, and if, as a result, there is a dramatic reduction in the number and severity of vehicle-related accidents, there is no doubt it is going to have a major impact on auto insurance.
It’s not the end of auto insurance, but “certainly companies will have to adapt,” with measures that could include expanding lines of businesses unrelated to autos.
If they become legal on the street, logically the insurance companies will add additional factors to determine the car insurance rate for Driverless cars, but most likely will lower the car insurance rates. Even if driverless cars became prevalent, drivers still would need comprehensive coverage. That would cover damage to a policyholder’s car not involving a collision with another car, such as damage from fire, explosions, earthquakes, fallen trees, riots and theft.
About the Author: Desanka Bumbarovska is a CFO & Co-Founder of Insurox, a national online insurance agency.