Autonomous Vehicles and the Insurance Policies: Where Does the World Stand?

Insurance CIO Outlook | Friday, February 18, 2022

The insurance sector is trying to work out a comprehensive plan for vehicle insurance policies as autonomous vehicles are about to take the roads.

FREMONT, CA: The day when autonomous vehicles will become mainstream is not far. The rapid development in technology for driverless automobiles is about to change the face of mobility. As a consequence, there will be a lot of advancements in the vehicle insurance sector. 

With vehicles turning driverless and technologies advancing, one can expect better safety and fewer collisions than that caused by manual driving. Although, there is still a lot of time before this stage is reached. Also, it is difficult to predict the trend of accidents; whatever be the trend, one can expect that insurers will face more diverse and versatile changes as autonomous cars get ready to run on software and sensors. The insurance industry will see a shift in the trend of auto claims as to the roles of drivers in accidents diminish.

There are chances of claims going two ways- either the driver or the software would be held responsible in the case of a crash. Hence, insurance companies will have to come up with new ways of quantifying the risks and determining coverage. Hybrid insurance policies are a feasible idea. Conventional coverage will be replaced by policies where there are scopes of liabilities being transferred or shared.

The lack of data related to self-driving car accidents is a possible hurdle for insurance companies in devising policies for autonomous cars. To prevent any confusions regarding claims involving self-driving automobiles, the insurance industry should try to find common ground with manufacturers and close the gaps at the earliest.

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