Home Page

 

Postheader
 
Home Insurance Auto Insurance Life Insurance Commercial Insurance



Though the dawn of Uber and Lyft has created their own hiccups in the insurance industry, self-driving cars are on the horizon and insurance companies around the world are scrambling to figure out how to measure the risks. The status quo is relatively simple: If you are in an accident with another vehicle that is operated by another human, then the at-fault person bears the responsibility of making the other party whole. The question at hand is this: If the at-fault party is a computer system then who is held liable? What if the rider in this vehicle is a kid being taken to school and the owner is at home. Is he still responsible though he had absolutely nothing to do with the crash? If that is to be the case would anyone ever buy a self-driving car? Business Insider recently reported that by the year 2020 around ten million vehicles will be, in part, self-operational. The question of Liability needs to be resolved.

Georgetown University law professor Marc Mayerson states, “somehow or another we need a mechanism to allow for compensation from auto accidents…In theory, self-driving cars would not create negligence liability for the passenger, non-driver, and owner of the car”

Often liability coverage is the most expensive portion of auto insurance. The reason for this is the fact that the amount to potentially be paid out to fix damage to your own vehicle is but a minor percentage of the potential payout to another driver that you could injure.  So if liability premiums were no longer a need in a world of self-driving vehicles, auto insurance should become a considerably lower priced necessity.  Mayerson continued, “…one model would be to have the car manufacturer bear all the liability and impose that liability simply based on the autonomous car’s being a substantial cause of the injury.” It makes sense to a degree. After all, if anything else were to malfunction causing bodily injury, the fault would lie in the hands of the manufacturer. This all seems well and good on the surface, but is this really a benefit to us?

As with anything else, raising a manufacturer’s cost of goods sold trickles down to the customer. So as we once thought we were saving money on our insurance, we are actually paying more for the self-driving vehicle that we purchased. Maybe even more than our insurance previously was depending on your personal motor vehicle report and driving acumen. The one way that appears to be a financial benefit is if you don’t buy a self-driving vehicle in a world peppered with them. In this case one would have to assume that the liability requirement on your auto insurance policy would remain intact, but less expensive now that the roads have become safer and easier to navigate without error. You would also avoid the high manufacturer mark-up.

Though the only thing that is constant in this world is change, one thing will remain. As long as people own cars, they will want their cars protected. Insurance itself isn’t going anywhere as the ability to transfer risk has prevented hundreds of thousands of bankruptcies. Self-driving vehicles are not at all that far away. We already see self-breaking systems and vehicles that will parallel park for you. It is simply a matter of time before you’re naming your invisible driver. Just don’t talk to it without a Bluetooth on. People may think you a Looney.

Posted 4:42 PM  View Comments

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
Join Our Newsletter Partners Program Refer A Friend Get A Quote
Johnston & Associates Insurance Quick Links
321 Billingsly Court, Suite 18
Franklin, TN 37067
615-716-2123
Home
Our Agency
Learning Center
Client Services
Get A Quote
Local Partners
Contact
Stay Connected!
Facebook Google+ Blog RSS Feed Twitter LinkedIn