E Will Autonomous Vehicles Kill The Auto Insurance Industry?

The insurance industry is set for some exciting times right ahead but after that, things could become ugly. Technological advances have found their way into the automobile industry and this is changing how insurance companies assess the risk profiles of motorists and their vehicles. The emergence of autonomous vehicles has shifted the focus of insurance companies towards technology related products.

Self-driving and highly tech-featured vehicles now harbor exposures to technological malfunctions and cyber crime, and this has forced motorists to adjust their auto insurance coverage to cater for the same. As such, getting a better deal on car insurance is becoming more complex than before with insurers providing a complex mix of features in their products in a bid to addressing the latest advances in car tech.

Now let’s take a deeper look at how the auto insurance industry will be disrupted by innovative technologies in the automobile industry.

How car-tech will change the auto insurance industry

Whenever we talk about tech and cars, the first thing that comes to mind is Elon Musk’s Tesla (Nasdaq: TSLA). However, more auto manufacturers have also joined the club of electric cars as the push towards a world free of gasoline cars continues. Nonetheless, owning an electric car instead of a gasoline car does not necessarily affect your auto insurance.

Instead, it is the increase in the number of tech-featured vehicles that are likely to flip the auto insurance industry. Currently, most vehicles already have one or two autonomous features with cruise control and auto packing being the most popular. There are others that also have drift sensors to detect when a vehicle is about veer off to a different lane effectively warning the driver.

These features are just the tip of what could come in the next few years. Semi-autonomous vehicles have already hit the road while there are several pilot projects for completely autonomous cars. These projects have shown immense success and analysts are already predicting that in the next 15-20 years at least a quarter of all cars will be autonomous.

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Disclosure: The material appearing on this article is based on data and information from sources I believe to be accurate and reliable. However, the material is not guaranteed as to accuracy nor does ...

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Dick Kaplan 3 months ago Member's comment

Quite possibly!