Driverless cars will change insurance forever
The UK Government is outlining measures for permitting trails of driverless cars on public roads by as early as next year. These trails have been blocked previously because of legal and insurance implications but the government is keen to start planning ways in which the new emerging risks might be dealt with at insurer and policy level.
The upsides of driverless cars are clear in terms of stamping out fraud. Accidents should in theory see a huge decline as the cars in the system would control themselves and not be open to human error; this in turn would see a reduction in premiums. Not only this but the data recorded in such vehicles would mean insurers could see the reasons for an accident straight away cancelling out any way of fraudulently claiming.
Saying that there are also some big problems in terms of insurance; the most poignant being who is to blame if an accident occurs? Obviously with no driver, there is no one at fault. Potentially the vehicle manufacturer or controller of the system could be at fault which may bring about a shift in the whole industry.
Whatever the implications of this new system it would mean massive changes for the insurance industry and roads legal system.
28.07.2014 - MCE Insurance