Are Driverless Cars a Crazy Idea?

 In Auto Insurance, Blog

How Driverless Cars Will Affect the Insurance Industry

Do you like to drive, or is it a pain to you? Would you be happier if someone else was driving your car for you? What if your car could drive itself? Technology advances so fast and its main goal is to make life easier and faster. One of the most recent and talked about tech projects is the creation of driverless cars.

If cars with people behind the wheel represent a risk, what do you think self-driving cars will be like? Experts seem to think that human error is what causes most accidents, so if cars were computer-driven —literally— fatal accidents would decrease. Let’s imagine that self-driving cars will, in fact, improve safety for all of us. How will insurance work in a world where accidents don’t happen as often? Even in that scenario, users still need to warm up to the idea of having a car that they don’t need to control, so, according to research, 25 years will go by before we see our roads full of autonomous vehicles.

How Driverless Cars Will Affect the Insurance IndustryThis means that for an extended period of time, driverless cars will coexist with regular, non-autonomous vehicles that continue to carry all the same risks we know today. According to Thatcham Research, these driverless vehicles will need to be classified and insured appropriately, and consumers need to be in full understanding of their own responsibilities, as well as the capability and functionality of these vehicles.

In case you were thinking that autonomous vehicles will not need insurance, think again. They will still require insurance coverage, but we can expect terms to be different in comparison to the auto insurance policies we’re familiar with today, particularly around premiums and liability. We can expect rates to be established around the risk profile of the vehicle, unlike today, where they’re established around the risk profile of the driver.


If you’re pro driverless cars, keep up to date with the latest news about this topic and as things evolve, talk about your insurance concerns with your independent insurance agent in Colorado. At AAI Central, we love to have that trusting relationship with our clients. Contact us today!

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