There was once a point in time where self-driving cars were only conceivable in the latest sci-fi or your favourite cartoon. However, with the technological revolution and our continuous efforts to achieve the impossible, self-driving cars are now very much a reality. These vehicles are already leading dramatic changes in the industrial industry, as well as many other industries. The Ontario government has allowed manufacturers to test these vehicles on the road, which means they’ll be available for purchase in the near future.
How exactly will self-driving vehicles affect the insurance industry and its customers? Crosbie Job Insurance breaks down everything you need to know.
Self-Driving Vehicles and The Insurance Industry
It may still be a few years before we start seeing driverless cars on the morning commute, however, testing and research in Ontario are rapidly increasing. Due to this dramatic rise, the insurance industry is assessing potential risks involving these vehicles, their safety, and other features. Self-driving cars are not yet the auto industry standard, but over a few years, we can expect these vehicles to be a popular choice based on the level of automation. According to the Insurance Bureau of Canada (IBC), these are examples of the ways self-driving vehicles will impact auto insurance companies:
❏ There will be fewer vehicle collisions, however, claims will end up being more for insurers because the technology in these vehicles is far more expensive to replace or restore. Insurance companies are already seeing this in current vehicles that come equipped with autonomous technology and results in increased insurance premiums across the industry.
❏ Using a new type of vehicle will come with new, never-before-experienced risks that require adjustment and learning. This is based on the software of these vehicles, network failure, cybersecurity breach or failure to update the technology.
❏ Self-driving vehicles can monitor and record information on the vehicle’s activities, which will ultimately be far more accurate and reliable than a human’s report or data. This data collection can assess risk, determine car insurance premiums, manage claims and look out for fraud.
❏ Claims that are put through may take longer to process than usual, due to a shift of blame onto the vehicle itself instead of the driver.
❏ Insurance companies should create a separate policy that covers driver negligence as well as technical vehicle failures or malfunctions.
❏ The data received from the vehicle should be shared with car manufacturers, your insurance company and the car owners themselves to determine who caused the accident.
❏ Federal safety standards will have to be updated to include this new self-driving software.
Crosbie Job Insurance is here for your vehicle now and will be in the future when self-driving cars become proverbial. We are your auto insurance in St. Johns for quality care, extremely affordable rates and covering you in case of a collision with car insurance quotes suited to your needs. Request a quote from us, and we’ll always act as your protective shield and keep you covered!