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Autonomous Driving Is Not The End For Insurance
Autonomous driving is becoming closer to a reality, which will change many different things.
If autonomous cars are so safe that accidents become rare, can the auto insurance industry survive?
Some car companies think they can eliminate road fatalities through autonomous driving and other safety features. “Our vision is that by 2020 no one should be killed or injured in a new Volvo car,” said the company’s president.
If that future becomes a reality, then why would we need liability insurance for our vehicles? (We’d still need insurance for theft or when someone else crashes into your parked car, for example.)
Automated driving is already here in several production cars, and dozens ofcompanies and university labs are working in the field. Tesla estimates that its Autopilot feature cuts accident rates in half, and that’s just in its current beta release. In Forbesalone, there have been at least four articles in the last four months about the possibledeath of auto insurance. So, the time seems right to take a closer look at the issues.
Why care?
The US auto insurance industry is significant: it generates $220 billion in annual revenue and supports 277,000 jobs, about the same number of mechanical engineeringjobs. Consultancy KPMG predicts that the market will shrink 60% by the year 2040.
If autonomous cars are so safe that accidents become rare, can the auto insurance industry survive?
Some car companies think they can eliminate road fatalities through autonomous driving and other safety features. “Our vision is that by 2020 no one should be killed or injured in a new Volvo car,” said the company’s president.
If that future becomes a reality, then why would we need liability insurance for our vehicles? (We’d still need insurance for theft or when someone else crashes into your parked car, for example.)
Automated driving is already here in several production cars, and dozens ofcompanies and university labs are working in the field. Tesla estimates that its Autopilot feature cuts accident rates in half, and that’s just in its current beta release. In Forbesalone, there have been at least four articles in the last four months about the possibledeath of auto insurance. So, the time seems right to take a closer look at the issues.
Why care?
The US auto insurance industry is significant: it generates $220 billion in annual revenue and supports 277,000 jobs, about the same number of mechanical engineeringjobs. Consultancy KPMG predicts that the market will shrink 60% by the year 2040.
New Technology Allows Insurance Companies Insight On Teenage Drivers
It takes years for drivers to build up creditability with insurance companies. Now thanks to Ingenie and Aviva Insurance young drivers can receive compensation for good driving habits early on.
Normally insurance payments are steep until drivers reach 25. However, with this new UK based company operating in Canada, drivers between the ages of 16 and 24 have the chance to prove they are good drivers and receive lower rates.
How this is done is through an internet operated device that will review, record, and evaluate driving habits. This is a first in North America, as most drivers must wait until they reach 50 for the possibility of low rates because they are safe drivers, now we can reward them for their success earlier in their lifetime.