The future of auto insurance is quickly approaching a major turning point with self-driving cars. These cars are rapidly becoming popular, and it is predicted that by 2030, they will make up almost a quarter of new cars sold worldwide. With their arrival comes a need to rethink how we approach car insurance coverage.
Self-driving cars have the potential to greatly reduce the number of accidents on our roads. This is because they are equipped with advanced technology that allows them to automatically detect potential hazards and make driving decisions based on this information. This technology has the potential to virtually eliminate driver error, which is the leading cause of vehicle accidents.
Despite this potential, self-driving cars are not completely accident-proof. There is still a possibility of mechanical failure or system malfunction, as well as human error when the car is in manual mode. As such, it is crucial to decide how insurance coverage for self-driving cars will be structured.
One of the most significant changes anticipated in the future is a shift toward product liability insurance rather than traditional auto insurance. This is the notion that the various companies that manufacture or develop self-driving car technology should be held financially responsible for accidents that occur due to malfunctions or defects with the vehicle. This means that if an accident does occur, insurance companies won’t have to determine fault between the buyer, the car, or the driver.
Another possibility in the case of self-driving cars is a change in policy when it comes to accidents caused by human error. This might include shifting responsibility away from the driver and onto the car manufacturers, who had programmed or designed the autonomous vehicle.
However, it’s essential to note that not all accidents involving self-driving cars are going to be the fault of the manufacturer. A driver, pedestrian, or bicyclist could still make mistakes that cause accidents, and it is best to have insurance policies in place to deal with such situations.
Insurance coverage for self-driving cars must be designed to accommodate the particular risks associated with these vehicles. This may still include the standard liability and collision coverage, but with some modifications. It is essential to take into account the impact of advanced driver assistance systems when assessing potential claims.
The future of auto insurance is inextricably connected to the emergence of self-driving cars. As these cars become more autonomous and ubiquitous, the insurance industry will face many challenges in creating new policies and coverage options. But ultimately, the rise of autonomous vehicles has the potential to make our roads safer for all, and the insurance industry must play an instrumental role in supporting this transition.