The number of drones in operation across the country continues to rise rapidly. According to the Federal Aviation Administration (FAA), more than 1.6 million drones were sold in the United States last year. All drones weighing more than half a pound must be registered with the FAA, and roughly 325,000 people have registered their drones so far. There has been much debate about the impact these devices will have on the insurance industry. The staff at Tri-Star Insurance San Diego speculates about some of the benefits and disadvantages.
Drone technology may be both beneficial and detrimental to the insurance industry in the foreseeable future. For instance, a San Diego homeowners insurance agency can benefit by using drones to secure video footage of incidents and accidents policyholders are seeking coverage for. With these highly mobile camera carriers, the insurance agency will be able to get footage from all angles as proof of what occurred during the incident.
The insurance industry may also benefit by providing drone owners with liability coverage. As the law currently stands, commercial drone operators must carry liability insurance, but many private operators are not required to yet. Regulators are currently holding hearings to discuss laws for operation, insurance, and privacy matters regarding drone use.
Issues will most likely occur in the fields of safety and surveillance. The current rules regarding drone use are murky, and the insurance industry may have difficulty determining liability for incidents involving these devices. For drones used in urban areas, liability exposure is much higher than it is for those used in more remote locations.
Insurers may also face onerous restrictions regarding when they can and cannot use drones during the course of an investigation. Privacy issues are a hot-button topic today, and insurance agencies may find their hands tied when it comes to using drones as an investigative tool. Until the government finalizes the regulations for drone use, we can only surmise what the effects will be.
To learn more about the private and commercial uses for drones and how they factor into insurance, contact American Tri-Star. We are a leading provider of home, business, health, and cheap car insurance in San Diego. Call 619-272-2100 today to speak with one of our knowledgeable representatives.