As, we know that as technology getting evolving day by day it changes the way people communicating, transporting. In every sector, man has to deal with consequences of automation. Automation changes the way word transporting. We already know about the Self Driving Cars or driver-less Cars.
Due to Self-driving Cars, there is no doubt that Auto insurance industry didn’t get the impact. Tesla the automaker clearly prove that how auto insurance industry should bound when the driver less car gets accident. According to National Highway Traffic Administration ( NHTA ) report the accident rates for “Tesla” drop to 40% when Autopilot was installed in 2015. From Tesla above experiment, it’s clear that there will need to change the Auto Insurance industry when self-driving Car heat the road. According to KPMG report: By 2040 the car insurance sector shrink to 40% of its current size. Due to self-driving, there will be 90% cut of all car accident due to Self driving Cars.
Let’s take an example, a man shockingly died in an accident while his Tesla S Model. The investigation shows that he had activated “Auto Pilot” feature before getting the accident. If we focus on accident highlights then some questions may arise in mind. If the car is running without driver then whose fault it was? Is my car safer? Does my premium go down? We can point out two subjects from above. 1) A Safer driving means less accident 2) Less accident mean low car insurance, we forget to notice one thing the car is driven by a machine (self-driving), but you’re(car owner) the one still paying for insurance.
How Car Insurance is Calculated?
Like other Insurances are calculated the car insurance are calculated depending on how likely to the insurance company is having to pay out and how risky you’re to insurance. Below are the some of the factors which help’s in deciding your car insurance.
Your Zip Code
About your Car
How long you Drive
The Coverage you want to Cover
All of the above factors will impact to figure out your insurance rates. If you are young driver having the history of bad credit, drive long distances and accidents, then you put yourself out of luck.
How automated (self-driving) car lower car insurance rates?
The Biggest one is on your driving record. Self-driving cars are automated so never drunk, tired, they never suffer from road rage. We know that most of the accident are caused because of natural disasters fog, wind, rain etc but machines are better to handle such conditions to drive safer than humans.
Self-driving cars calculate the car insurance rates Clearly, if you’re not “Driving”the car then auto insurance company doesn’t have any reason to charge long distance drivers more. You can minimize many factors that may lead to high premiums, clearly means consumer pay a minimum.
How robot Chauffeur impact car insurance?
Some of the automaker companies are building their insurance plans by keeping self-driving in mind. Eg. Root Insurance Company. The “Root App “measures your driving habits over three to two weeks and cost your insurance policy based on your results. Another one is Progressive Snapshot “is a device that measures your driving habits simply plugging in your car. A Volvo multinational manufacturing company announced in 2015 that “The company will pay for any damage or injuries caused by its fully autonomous IntelliSafe Autopilot system.
The key point is if are looking for way to lower you car insurance then must see car uses data like Progressive Snapshot , to offer lower car insurance rates. also check “How to save money on Auto Insurance”.
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— AutoInsurance Invest (@AutoInsurance_2) November 15, 2017