How Will Driverless Cars Affect the Insurance Industry?

Insurance for Driverless Cars in San Diego, CA

As tech giants and automakers in the United States compete for shares in the burgeoning market of autonomous vehicle production, San Diego car insurance agencies are paying very close attention to the developments.

From Google to Apple and Toyota to General Motors, advanced prototypes of driverless cars are hitting the road on test-driving missions. These vehicles are being evaluated for a number of aspects and are scoring quite well with regard to mechanical performance. However, their road safety record is something the auto insurance industry is concerned about.

Self-driving cars are getting into a lot of accidents, approximately at twice the rate of traditional vehicles driven by humans. Still, it is interesting to note the circumstances in each of these accidents. A 2015 research study by the University of Michigan revealed nearly all crashes involving driverless cars are caused by drivers who bump these cars from behind at low speeds.

What insurance industry analysts are seeing is driverless cars are getting into accidents through no fault of their own. Self-driving cars are excellent at following traffic rules and regulations and their logic circuits and microprocessors are coded with legislation, the rules of the road, and safe driving techniques. If anything, the inherent problem can be found in the human drivers who disregard traffic rules and end up colliding with autonomous cars.

Thus far, the insurance industry sees driverless cars as an excellent means of reducing risks and liability on the road. Near-future visions of taxi and Uber fleets of autonomous cars seem very tempting to insurance agency executives, who tend to favor situations that present reduced liability. In the end, insurance premiums for autonomous cars may be lower than for their human-driven counterparts.

As this technology develops, there may be further changes in how driverless cars will impact insurance. To learn more or to get a free quote on cheap auto insurance in San Diego, call the insurance experts at American Tri-Star at 619–272-2100. One of our knowledgeable representatives would be happy to assist you.