Will Self-Driving Cars Impact Insurance Costs?

You’ve probably heard talk on the news and tech blogs about the emergence of self-driving cars. To some, this has sparked questions of safety and worries that unmanned vehicles could pose threats to other drivers should they malfunction. Not just that, but it also brings up concerns for many about potentially rising insurance premiums to accommodate for the new tech trend – especially after the much publicized accident involving a Tesla car running on its “autopilot mode”.

In reality, insurers are doing exactly the opposite. The six months since the Tesla accident have proved to be enlightening, to say the least. Instead of finding fault with the autopilot function, the lawsuit and subsequent investigations have actually revealed that the function actually makes Tesla’s 40% safer. This is thanks to all the sensors, cameras, radars, and the supercomputer equipped within the vehicle. The semi-autonomous driving is even somewhat behind the times at this point, with more and more advancements being made since the Tesla’s release. Meaning, self-driving cars are only getting safer and safer.

What this means for the insurance industry as a whole is unclear. However, Root Car Insurance, a startup insurance company based out of Ohio, is already taking action. Based off of the reports on the Tesla accident, the insurer decided to go ahead and slash their customers’ rates should they opt to use a self-driving car. It’s worth noting that Root is far from the atypical insurer, embracing a more progressive business model that’s based off of potential buyers using an app while they drive to determine their risk factor before Root will take them on. It’s unclear what this may mean for the industry as a whole, but safer roads are better for everyone. Hopefully Tesla and other car manufacturers can continue this trend.

In the meantime, accidents still do happen. If you find yourself in a car accident (with our without a self-driving car), Elsner Law Firm can help you get the representation you need. Give us a call today.