How Self-Driving Cars Are Impacting Auto Insurance Companies
Insurance is a pretty vital thing in the current economy. God bless those without one, because you never know when, it will come back to haunt you. Having said that, the auto insurance is perhaps the most happening segments after health insurance. But if stats and reports are to be trusted, this exciting phase in the auto insurance segment could turn tables soon and there could be huge uproar.
Advances in technology have created an environment where innovation is the main disruptive force. Whether you are in the smartphone business or the computing industry, the quality of devices being produced appears to be the main determinant of success or failure in a highly competitive market.
Most cars today have one or two autonomous features, including cruise control and auto backing. Some vehicles even have autopilot capabilities, meaning the driver can choose to let the self-driving system take control. These features are a massive leap in the automobile industry, but their effects are not limited to “taking control.”
The auto insurance industry is one of the biggest victims of this paradigm shift. The more autonomous vehicles produced, the higher the impact. The industry relies on premiums paid by motorists and, according to research, insurance against human error seems to be the industry’s cash cow. Reports indicate that over 90% of all car accidents are caused by human error and this projects a very lean appeal in the future impact of self driving cars.