Photo: Kia
Not another day goes by without hearing about autonomous cars or ride-sharing, apparently. These two ideas that get massive investments from corporate giants might also bring an unexpected bonus into the lives of drivers worldwide.
Along with the added safety of cars that could drive themselves and prevent accidents, even when humans are involved, this technology could also lower your insurance premiums, Automotive News reports.
As most drivers know, it is hard to get and maintain a small insurance premium. Depending on the laws in your country and your level of luck, as well as your age, you might pay a small fortune for car insurance.
The cost of insurance can reach incredible rates for those that have been involved in an accident, and things get worse by the year for young drivers and those that have recently obtained a driver’s license and bought their first vehicle.
A study published by Deloitte shows that insurance premiums will decline thanks to the introduction of semi-autonomous driving technology, as well as the launch of self-driving cars. While insurance companies might view this as a horrible danger to their business models, Deloitte believes that they have the opportunity to thrive if they adapt their operations.
Accidents are expected to decrease in frequency and severity as the years go by, but insurers will still be needed. The reason? Conventional vehicles will still exist, and people will need insurance. Early adopters of new technologies will still need insurance to drive legally on public roads. Unfortunately, for the time being, rates will not go down for anyone, but insurance costs are expected to decrease within the next five to ten years.
The described event could only take place if insurers think outside the box and accept self-driving vehicles and technologies that help drivers to avoid accidents as elements that will reduce a customer’s insurance premium.
Until this happens, Deloitte expects ride-sharing services to contribute to lower insurance costs. Instead of getting a deduction on your vehicle’s insurance premium for picking strangers up through an app on your way to work, the reduction will happen in time, as fewer accidents will happen on the roads of tomorrow.
The predicted decrease in accidents will happen because fewer cars will be on the road because millennials are expected to adopt more and more ride-sharing schemes, reducing the probability of an accident thanks to a smaller number of vehicles driving at the same time.
As most drivers know, it is hard to get and maintain a small insurance premium. Depending on the laws in your country and your level of luck, as well as your age, you might pay a small fortune for car insurance.
The cost of insurance can reach incredible rates for those that have been involved in an accident, and things get worse by the year for young drivers and those that have recently obtained a driver’s license and bought their first vehicle.
A study published by Deloitte shows that insurance premiums will decline thanks to the introduction of semi-autonomous driving technology, as well as the launch of self-driving cars. While insurance companies might view this as a horrible danger to their business models, Deloitte believes that they have the opportunity to thrive if they adapt their operations.
Accidents are expected to decrease in frequency and severity as the years go by, but insurers will still be needed. The reason? Conventional vehicles will still exist, and people will need insurance. Early adopters of new technologies will still need insurance to drive legally on public roads. Unfortunately, for the time being, rates will not go down for anyone, but insurance costs are expected to decrease within the next five to ten years.
The described event could only take place if insurers think outside the box and accept self-driving vehicles and technologies that help drivers to avoid accidents as elements that will reduce a customer’s insurance premium.
Until this happens, Deloitte expects ride-sharing services to contribute to lower insurance costs. Instead of getting a deduction on your vehicle’s insurance premium for picking strangers up through an app on your way to work, the reduction will happen in time, as fewer accidents will happen on the roads of tomorrow.
The predicted decrease in accidents will happen because fewer cars will be on the road because millennials are expected to adopt more and more ride-sharing schemes, reducing the probability of an accident thanks to a smaller number of vehicles driving at the same time.
Google News