Car Insurance And The Driverless Car

Much is being made in the press at the moment of the development of autonomous, or driverless, cars. Many manufacturers are testing the technology, but Google appears to have stolen a march on mainstream car manufacturers in the race to bring such vehicles to market. Big car firms such as GM have announced that they will soon be shipping models with some autonomous elements. Their Cadillac range, for example, will feature an advanced type of cruise control from 2016. This will take heed of other traffic and adjust speed accordingly. It will also steer the car to keep it in the middle of the lane.

Complete Autonomy

While many manufacturers are concentrating on this gradual approach to introducing autonomous technologies, Google is focused on complete motoring autonomy. The California tech giant first used converted Toyota Prius cars to test their systems, but they recently announced a purpose-built driverless two-seater. The vehicle has no steering wheel, pedals or gear stick. Instead there is simply one button to switch the car on and another to stop it in emergencies. The passengers simply summon the car on their smartphone and then input the destination to which they wish to travel. Clearly, this new technology raises questions for the car insurance industry, and it will be interesting to see how companies such as Auto and General respond to the changes.

What Happens to Car Insurance?

At the moment, car insurance premiums are worked out with significant reference to the driver. The cost will change depending on their age and previous insurance history, among other factors. Clearly, this will no longer be relevant. The autonomous car needs no driver, so these details are largely irrelevant. Instead the industry will have to work out new policies focused on aspects of the car and perhaps where it is being driven. We might even see those premiums drop significantly as the safety of autonomous cars is proven.