As today’s technology continues to improve, everyday devices are becoming more and more ‘smart’. The self-driving car is not far from becoming a reality, which may make people wonder what effect this may have on insurance policies in the future. The Insurance Institute for Highway Safety estimates 3.5 million self-driving automobiles will be on the road in the United States by 2035.1 Given the fact that it will take time for insurance companies to analyze the effectiveness of the safety features on the latest technology advances in vehicles (and they will use that to adjust rates accordingly), there are predictions on the effects.
Product Liability Claims
While the number of claims from accidents may be reduced, it may be possible for automotive accidents to turn into product liability claims. Drivers will likely hold a high expectation of automatic vehicles to make the right decisions and let their guard down. With the features these automobiles have in order to guide them, getting into an accident would mean that something went wrong with the vehicle. We will have to wait to see what effects this may have on laws and coverage.
In the case that someone gets hurt in an auto accident while on the job, it is on the insurance agencies to cover the medical and disability costs. The cases of this happening with automated vehicles may decrease which would mean fewer injured workers as well as a decrease in the costs for these claims as a whole.
Insurance coverage varies based on the state. It may be difficult for automotive makers to keep up with the requirements of all the different states without a consistent law throughout. As the vehicles become “responsible” for driving, the laws may need to change so what is covered with liability insurance would be the same across the board.
For those who decide to get these automatic automobiles, the features might offer a lower insurance premium. However, the automobile producers may have to start picking up on that insurance cost, which could cause the price of the vehicles to rise in order to make up for the difference.
Will the Need for Personal Insurance Disappear?
Although the industry may have an increased need for insurance while the car owners could need less, the need for personal coverage will still exist. In the case that a natural disaster comes through and causes damage to the vehicle or someone breaks into the vehicle, owners would still need to have their own coverage for assistance in these matters or cover the costs themselves.
Keeping up with the Latest News
At Fasula-Kaplan Insurance, we pride ourselves on staying up-to-date with the latest insurance information. As more information comes to the surface, you can count on our professionals to have the latest knowledge and provide the proper services when the time comes. For information on our current auto insurance policies, contact us today at (602) 564-0880.