Sunday June 19, 2016

Will Self-Driving Cars Destroy The Auto Insurance Industry?

Probably not, since driverless cars may not be fully autonomousآ—and then there are risks such as nature-caused incidents and even hacking. While liability will likely be passed to the vehicle, we will probably still have to pay up as manufacturers could tack on insurance costs to vehicle sales.

آ…insurance issues may initially grow more complex -- but possibly much simpler later on, when human-caused accidents mostly disappear. "This changes the basic assumptions under which insurance is written," said Edward Cohen, vice-president of government and industry relations at Honda, which tests driverless cars at the Concord Naval Weapons Station site. "If you're in a crashless world, or if the number of crashes is severely reduced through the use of technology ... that model would need to be re-evaluated."