Published On: Sat, Jun 25th, 2016

Will Auto Insurance Premium Cost Fall With Autonomous Cars?

Very soon autonomous vehicle will be a reality and with this the dilemma will be invited about how to insure such cars and the owners.

It is believed the number of accidents will definitely drop to a great extent with the self-driving cars. The reason behind this is more than 90 percent of the crashes occur due to drivers’ error. Hence, it is said insurance bills could be lowered for consumers.

Currently the US market for personal auto insurance policies generates $200 billion annually in premiums and this could shrink significantly.

Will Auto Insurance Premium Cost Fall With Autonomous Cars

Managing director at KPMG, Joe Schneider, said dramatic changes could be seen in future in terms of insurance.

In recent years the prices of insurance premiums have climbed due to increase in the number of crashes.

In 2014 the crashes rose by 10 percent to 6.06 million. In 2009 the number of crashes were 5.51 million, reveals data of National Highway Traffic Safety Administration.

Nationwide the average annual spending for car insurance in 2013 was $841.23. In 2009 it was $786.65, reveals figure released by National Association of Insurance Commissioners.

Within next six years it will be mandatory for the new cars to come with automatic emergency braking feature to avoid collision.

About the Author

- Paul Linus is an eminent online journalist who has been writing news, features and editorials on different websites from across the world for about a decade.