Jason from Hong Kong asked the panda, “Will self-driving cars be cheaper to insure or more expensive to insure?”
Insurance Panda answers:
Self-driving cars sound amazing. I mean, how nice would it be to get a few extra minutes of sleep during your daily commute to the office?
The idea of self-driving cars is becoming more and more feasible, but there are still difficulties that need to be addressed. Google has been working on a self-driving car for years now, but it’s still not able to obey traffic signs and conduct itself in bad weather. But what happen to your insurance policy when you’re not responsible for operating a vehicle? That question is still being figured out.
Right now, if you’re an automotive genius and have managed to build a self-driving car for yourself, it’s impossible to get insurance. Insurance companies have no way to manage and monetize risk, so coverage options aren’t possible. But those who support self-driving cars claim that they will reduce automotive accidents as well as associated deaths, help curb traffic jams and even act as a chauffeur, picking us up and dropping us off if we want a night out on the town.
So wouldn’t insurance companies like self-driving cars? That remains to be seen, but you’ll still need car insurance. Your self-driving car still has the chance to be stolen, vandalized, or subject to Mother Nature’s wrath. Also, you’ll still share the road with cars operated by humans, so the risk for accidents is still valid. But, it will take some time before we can truly analyze just how safe the self-driving car is on traditional roads. Even the prototypes are being sent back to the shop to be tweaked so it will likely be many years before there are enough self-driving cars to get a good idea of safety statistics.
Just like anything, the auto insurance field will be expected to adapt to the changing auto market. Even if you save money on insurance, it’s likely you’ll use to make your car payments.