Connect with us

Hi, what are you looking for?

CleanTechnica

Autonomous Vehicles

Will Self-Driving Vehicles Eliminate The Need For Auto Insurance?

There are over 30,000 deaths each year on the roads of the United States due to operator error… but not for long if self-driving vehicles have anything to say about it. With autonomous vehicles targeting to eliminate 90% of accidents caused by humans, they have the potential to save 27,000 lives per year. That’s 27,000 families that weren’t impacted by a sudden, unplanned, tragic accident.

Looking to accidents as a result of driving under the influence, autonomous vehicles promise to bring major reductions in incidents and related accidents. Nothing different must be done to save lives… the passenger only needs to get in the vehicle as normal and, instead of having to drive home, the vehicle will bring them home safely and — most importantly — without causing harm to others on the road.

The improved safety of autonomous vehicles has been widely discussed, but the massive reduction in traffic accidents related to operator error presents a big opportunity for drivers, as the improved safety should allow them to save money on insurance as well. If accident rates drop across the board by 90%, the need for auto insurance drops accordingly.

What data do we have to support claims that accident rates will go down? Looking at the Google Self-Driving Vehicle program, the cars have put in over 1,000,000 miles on public roads with a total of 17 accidents. That isn’t encouraging until we look at the number caused by the Google-bots… which is zero… and you had better believe that they have the data to prove it!

In parallel to the development of fully autonomous vehicles, “Active Safety” and other “Advanced Driver Assistance Systems” (ADAS) features are rapidly arriving in new vehicles in all tiers — from Nissan, Mercedes, Kia, Tesla… — at all price points. These Active Safety features represent the early stages of the progression towards fully autonomous driving, while also starting to earn the trust of drivers as vehicles take a more active role in driving.

Looking past safety statistics, connected vehicles have the potential to provide extra data to insurance companies to allow safe drivers to get the lowest insurance rates possible.

Stepping back and looking at the insurance industry as a whole, it is obvious that a full frontal assault on the status quo is going to be causing some disruption in the very near future. Will insurance companies follow the many auto manufacturers that were caught flat footed by the electric vehicle revolution, or will they recognize the threat to business as usual and respond with some innovation? Time will tell.

 
Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 
 

Advertisement
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

I'm a tech geek passionately in search of actionable ways to reduce the negative impact my life has on the planet, save money and reduce stress. Live intentionally, make conscious decisions, love more, act responsibly, play. The more you know, the less you need. As an activist investor, Kyle owns long term holdings in BYD, SolarEdge, and Tesla.

Comments

You May Also Like

Cars

Tesla has officially launched its insurance platform in Texas and has a neat way of determining how Tesla owners receive their rates. The insurance...

Climate Change

Record-breaking climate disasters will be the name of the game this century. We’ve already seen dozens if not hundreds of climate disaster records broken...

Cars

For the most part, electric cars are just “regular” cars. They go when you press the pedal and they turn when you spin the...

Autonomous Vehicles

Tesla keeps coming under fire regarding its Autopilot feature and how it is marketed or presented. I wanted to dive into this with a...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.