There has been a lot of talk recently about Driverless Cars. Many people believe that in the not-so-distant future, automobiles will become so technologically advanced that humans will no longer need to operate them. In fact, there are a few driverless cars already out there. However, this type of transportation is a long way from entering the mainstream. But, as the possibility of a driverless future becomes more likely, there are many questions to ask. One of those questions being, how will a driverless automobile industry change the world of car insurance?
It is theorized that driverless cars will be the death of Auto Insurance. If the technology goes where the specialists think it is going, then these cars will substitute human error with flawless artificial intelligence. Meaning, with only computers in control, there will be no more collisions in intersections, no more pile-ups on the freeway, and no more fender benders in parking lots. If this theory is correct, then the auto insurance will most definitely collapse. After all, if there is no risk associated with driving anymore, then there is no reason to buy car insurance.
It is important to note that the massive societal transition from human-operated to computer-operated vehicles would take at least twenty years. There will be a long stretch of time where half of the drivers on the road are people while the other half are computers. So, in this case, the obvious question is this: If a car controlled by a driver and a car controlled by a computer get into an accident, then who is at fault? If the human did everything they could to stop the accident, and the computer did what it was programmed to do, it is hard to say who would be at fault.
And furthermore, how would you go about providing a driverless car with insurance? After all, a computer has no age, driving record, credit history, etc. This is where everything gets very fuzzy. Nobody really knows how the issue will be dealt with when the technology presents itself on a massive scale. However, we can all agree that as the potential for a society filled with driverless cars grows, the auto insurance industry will be severely altered.
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