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Many experts have predicted that the introduction of self-driving cars will mean the decline of insurance companies. A Morgan Stanley report back in 2016 estimated that the insurance industry would dwindle by as much as 80 percent by the year 2040. Newer research, however, is debunking this idea. Instead, future coverage may just be shifting away from Illinois drivers.

Analysts at Bloomberg New Energy Finance have stated that rather than a sudden decline in revenue, insurance companies will experience a gradual shift in the type of auto insurance products that they can make available. New sources of revenue are also likely to open up. Policies will remain, but who pays for them may change; manufacturers and technology companies will be needing coverage instead of individual drivers.

With changes to the nature of insurance premiums, companies that are quick to adapt to the technological advances may be at an advantage. Insurers could provide cyber insurance to protect cars against hacking.

There is also the fact that recent years have seen many accidents involving self-driving cars. Since the cameras, sensors and other features that come on self-driving cars are expensive, they will bump up the average repair cost per accident. Before full automation becomes the norm, insurers have the chance to provide coverage for both drivers and cars.

So long as drivers are in total or partial control of their vehicles, they are responsible for any collisions they cause. An accident victim can file a claim against the other driver’s auto insurance company and, if successful, be compensated for medical expenses, lost wages and whatever else applies. Legal counsel could bring together the necessary proof of negligence or recklessness, estimate a fair amount and negotiate for it out of court.