Driverless Car Insurance: How Could It Affect You?
Many of us might be counting down the days until we have a car that can drive for us, but last week’s fatal crash in the USA involving a Tesla operating in Autopilot has raised fresh concerns over safety. As big a shake up to the world of transport as Karl Benz’s first car in 1886, driverless cars could offer new opportunities to individuals and businesses – but what about the insurance implications?
First came cruise control then came automated parking. Now robot cars that can drive along in autopilot thanks to an army of gadgets including radar, cameras and computers that make thousands of calculations every second, are not a sci-fi dream but are a reality on the roads in Britain. Fully automated vehicles that manufacturers claim are capable of leading to accident-free driving are expected to hit the streets in as few as a couple of years, with virtually every major car manufacturer currently engaged in a driverless car development programme.
Safety advances
According to the Association of British Insurers (ABI), 90% of accidents on the road are caused by human error. As anyone who has ever allowed their car to park or change lanes for them can testify, handing over control can feel a little unnerving. But with manufacturers such as Tesla claiming their cars are up to twice as responsive as the average human when in autopilot mode, the fact is a driverless car could be less likely to have an accident. Unfortunately, the fatal crash in the USA last week involving a Tesla on autopilot has put these claims to serious test, but to put it into perspective Tesla claims that the Florida crash is the first fatality in over 130 million miles driven in Autopilot, making it statistically still safer than normal driving.
Money saving technology
So with risk reduced will we also see insurance premiums go down? The likelihood is that if driverless cars prove safer, premiums should reduce. Some insurers already consider certain specifications, such as automatic emergency braking (AEB) technology, which according to Thatcham can reduce rear-end collisions by 38%, as lower risk, so offer lower premiums accordingly.
As driverless cars become the norm, insurance companies will study statistics to see what actually happens, though some predict it might not be the accident-free dream we hope, as seen with last week’s crash. There is an argument that cars that are almost automated, but not quite fully, pose some of the greatest risks. They say that drivers will become distracted when they’re not fully engaged with driving and then when their input is needed, responses will be slowed.
Currently, the law shows that even if a car is capable of self-driving you need a valid licence and insurance to pilot one. But insurance companies will need to take into account the changing picture of who, or what will be responsible in the case of an accident. With driverless cars, people essentially become passengers of the car, a bit like a taxi, and there are some mutterings about the possibility that drivers could sue manufacturers if there is a fault in the system that causes an accident. Again, this situation is likely to have implications for insurance premiums.
Car manufacturers leading the driverless way:
Tesla – The Model X and Model S both currently offer Autopilot, which can change lanes and steer as well as self-park. The company claims people will be able to summon completely driverless cars from across the country by 2018.
Volvo – expect to have 100 self-driving cars on real-world roads in 2017.
Google – their self-driving car project continues to rack up the miles, with just two accidents reported in April 2016, both caused by other vehicles driving into them.
Lower your insurance
You don’t have to have a futuristic car to reduce your insurance premiums. The first step is to shop around or get a specialist broker to do the hard work for you.
Whatever car or fleet of cars you own, contact our expert team at Park Insurance for a no obligation quote for personal and business vehicle insurance.