Self Driving Car Insurance: What You Need To Know
The future of transportation is rapidly evolving, with self-driving cars becoming a reality on our roads. As autonomous vehicles increase in popularity, the insurance industry will have to adapt accordingly. In this article, we’ll discuss the key aspects you need to know regarding self-driving car insurance.
1. The Current Insurance Landscape
Currently, auto insurance policies primarily focus on the human driver and their behavior behind the wheel. Factors such as age, driving history, and location are all part of determining a person’s premium. However, as cars become more autonomous and require less human intervention, insurance will need to shift its focus to other factors.
2. Autonomous Vehicle Levels
There are six levels of automation when it comes to self-driving cars – Level 0 (no automation) to Level 5 (fully automated). As a car moves up in levels of automation, the aspect of human control decreases significantly. Consequently, this will impact how insurance companies weigh risk factors when providing coverage.
3. Liability Issues
In case of an accident involving a self-driving car, determining liability becomes a challenging task. With human input decreasing and technology taking over control in various aspects, it could lead to potential disputes over whether the driver or vehicle manufacturer bears responsibility for the accident.
In the future, liability could shift from drivers to manufacturers as cars become more autonomous. It means that manufacturers might be held responsible for incidents caused by software defects or hardware malfunctions.
4. Data Collection
With increasing autonomy levels comes an increase in data collection from the vehicle itself. Telematics systems record information about vehicle speed, location, acceleration patterns, and so on. This information can provide invaluable insights into understanding how self-driving vehicles behave and what causes accidents.
Insurers may use this data to help design better policies that factor in the risks associated with autonomous vehicles while also identifying potential sources of liability.
5. Autonomous Vehicle Coverage
As the insurance industry adapts to self-driving cars, we may see the rise of specialized coverage for these vehicles. Such policies might include protection against software and hardware failures, cybersecurity threats, and various levels of automation.
6. Premiums And Discounts
Current auto insurance premiums may not be applicable to autonomous vehicles. As these cars typically function using advanced safety features and technology that reduces the likelihood of accidents, the traditional factors used in calculating premiums may change.
Insurance companies may also offer discounts to policyholders who own self-driving cars, recognizing the reduced risk associated with these vehicles.
In conclusion, as self-driving cars become more prevalent in our society, understanding the implications for auto insurance is essential. From changing liability rules to an evolving premium landscape, it is crucial to stay informed about the latest developments in this emerging field. Keep an eye on the insurance market for new policies and options designed specifically for your autonomous vehicle.