Taking the Wheel: Self-Driving Cars and Insurance Coverage
With every new model year, cars sport more automated features and crash avoidance technology, like blind-spot monitoring, rear traffic sensors, and forward-collision and lane-departure warnings. Each of these will, of course, be built into the fully self-driving vehicles sure to come in the next few years.
As such crash avoidance technology gradually becomes standard equipment, insurers will be able to better determine how well these components reduce the frequency and cost of accidents. For accidents that do still occur, these tech components also can help confirm whether a higher percentage of product liability claims result, as claimants blame the manufacturer or suppliers for what went wrong rather than their own behavior. Liability laws might evolve to ensure that autonomous vehicle technology advances are not brought to a halt, due to the potential financial risk.
While experts differ as to how quickly the evolution to autonomous vehicles will take, most drivers can expect the steady progression from a minimally or semi-automated car to the next level to continue year after year. According to the Insurance Institute for Highway Safety, it is anticipated that there will be 3.5 million self-driving vehicles on U.S. roads by 2025, and 4.5 million by 2030. However, the institute cautioned that these vehicles would not be fully autonomous, but would operate autonomously under certain conditions.
An industry survey of more than 200 experts in the field of autonomous vehicles found three primary obstacles ahead: legal liability, elected and regulatory policymakers, and consumer acceptance. An Insurance Information Institute Pulse survey reported that 55 percent of consumers would not ride in a fully autonomous vehicle. Some do not want control to be taken from them and would resist the move to complete automation, even stating they avoid using the cruise control feature for that very reason.
Some aspects of insurance will be impacted as autonomous cars become the norm. There will still be a need for liability coverage, but over time the coverage could change, as manufacturers and suppliers and possibly even municipalities are called upon to take responsibility for what went wrong.
One thing remains certain, however. Technology promises to continue on its march forward, and self-driving cars – or, at least, more features that enhance safety – are sure to become a more prevalent feature of the automotive landscape. To keep up with these changes, and the impact it could have on your auto insurance coverage, contact the professionals at The Reschini Group.
Source: https://www.iii.org/article/background-on-self-driving-cars-and-insurance
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The Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.
