Self-Driving Car Technology May Cause Huge Drop in Insurance Premiums

Auto insurance companies like Geico, Allstate, State Farm, and many others are grappling with the realization that driverless car technologies may eventually result in a huge dent in their revenue. Last year alone, the auto insurance industry collected approximately $195 billion in premiums from U.S. drivers, but with the dawn of safer cars that are expected to drastically reduce traffic accidents, these kinds of profits may soon be a thing of the past.

Why? Self-Driving vehicles are designed to sense and react to impending collisions before they occur using a combination of cameras, sensors, radar, GPS tracking, and other software. If an obstacle is identified on the road, the car will immediately react by engaging collision avoidance systems. As more aspects of driving are automated, accidents are expected to plunge thanks to a huge reduction to the element of human error. Consequently, where there are fewer accidents, drivers may need less insurance coverage. In fact, car insurance premiums are expected to dip as much as 60 percent in the next 15 years as self-driving vehicles begin to hit the roads.

Other new car technologies have contributed to insurance company losses as well. For example, many new vehicles are equipped with a system that automatically breaks when it causes an accident, that beeps when cars get too close to traffic or who drift from their lanes without signaling. Other new technologies, like park-assist or even self-parking models, have made it easier and safer for people to park their vehicles without the risk of causing property damage or injury. Furthermore, with a growing number of people foregoing car ownership in favor of ride sharing services such as Uber or Lyft, there may be fewer cars on the road and therefore less insurance customers.

While technologies like these are slowly removing the element of human error, the industry is bracing for upheaval. To read more on this topic, click here.

Hurt in a Car Accident? Call George Sink, P.A. Injury Lawyers Today

We can all agree that anything that makes our roads safer is a good thing, but until autonomous vehicles become the norm, human error and negligence will continue to cause preventable accidents. If you or a loved one has been injured in a car accident, the time is now to consult with an experienced South Carolina car accident attorney at George Sink, P.A. Injury Lawyers. We have helped more than 40,000 South Carolina residents obtain the compensation they need to put their lives back together after a serious injury. Whether your accident involved a car, truck, motorcycle, or moped, our skilled team knows what it takes to bring you the money you need – FAST.

Take advantage of a FREE consultation with our firm by calling (888) 612-7001.