Tesla, Google and Ford Self-Driving Cars Paving The Way To Cheaper Car Insurance
Why Do Americans Want Self-Driving Cars? Self-Driving Cars Could Equal Cheaper Car Insurance
Even after a cop recently pulled over a self-driving car for exceeding the speed limit, people may find self-driving cars to not only be safer, but also give us cheaper car insurance, making semi-autonomous and autonomous vehicles an attractive alternative to traditional cars.
In a survey made by The Boston Group, 55% of the 1,500 participants said they were either “very likely” or “likely” of buying a semi-autonomous vehicle. A semi-autonomous vehicle is a car that drives itself to some extent. In that same survey, 44% said they would buy a completely autonomous car in the next ten years. That being said, there is a very large part of the population interested in buying these types of vehicles.
The survey also assessed the reason why people were interested in buying a semi-autonomous self-driving car. Interestingly enough, it isn’t because they are safer. The reason why people love these cars is because there are cheap insurance for cars with this specific feature. This distinct trait was on top of the list compared to fuel efficiency and time savings. The only time in which safety was the most important reason for having one of these cars was when people were asked about autonomous cars. The second reason being, of course, being a cheap insurance car.
Cars with cheap insurance are very likely to become popular among the population in the near future. According to the National Association of Insurance Commissioners, the average Ameri car insurance costs around $800 annually. While we still don’t know how much will an insurance cost for a self-driving vehicle, it’s estimated .
Some experts even speculate that no insurance may be needed at all – in case these cars won’t crash. The insurance business model we have in existence today is dependent on car crashes and their economic damages. When we take car crashes out of the equation, there is no need of insurance at all.
Although this sounds like a good thing for drivers that want to purchase self-driving cars in the future, insurance companies seem to be adapting to the change.
Insurance companies know that insurance premiums will go down even for drivers of semi-autonomous cars. This due mainly to features such as the blind spot monitoring, automatic braking, and collision avoidance among others. That being said, cars that are cheap on insurance such as self-driving cars will get discounts from these companies to buy items such as anti-lock brakes – which may still be necessary for these cars increasing the car’s safety even more.
Given the fact that the features of these cars decrease also crash costs for the insurance company, the companies can still retain an interesting profit even when lowering their premiums. Basically, it’s a win-win situation for both drivers and insurers.
One of the most expensive things insurance firms have to pay for are pedestrian accidents. That’s why they will offer discounted fees for people who include in their cars technology that avoids this from happening. This is already a common action in Europe. Slowly, but steadily it has expanded to the U.S. too.
All drivers of both semi-autonomous and autonomous cars will be financially benefited. Insurance cost for cars will likely go down and even probably disappear – at least to a certain extent.