As self-driving vehicles become more advanced and start to become more common on the roads, there are lots of insurance questions left unanswered. Self-driving, or autonomous, vehicles could shake up the car insurance industry, and several questions need to be answered before these vehicles become go-to transportation choices.
One of the biggest questions surrounding self-driving vehicles is who’s exactly at fault if an accident occurs. Traditionally, the driver would be at fault for any accident, but what if the accident is the result of a technology malfunction? Does the manufacturer hold any responsibility, since they developed the technology?
The question of liability and self-driving vehicles could affect everything from driver responsibility to the type and amount of insurance that a driver must purchase. If manufacturers are found to hold some responsibility, they might have to purchase additional liability auto insurance, which could impact the overall cost of self-driving vehicles.
Depending on who is ultimately responsible for accidents involving autonomous vehicles, you may or may not need to purchase insurance as a driver. Perhaps you would be responsible for a portion of the insurance, and the manufacturer would be responsible for another portion. Or the entire responsibility for a fully autonomous vehicle might lie entirely with the manufacturer.
Additionally, if your driving skills aren’t impacting the risk of riding in the vehicle, your driving history might not affect your insurance rates. This could have pros and cons. Drivers with clean driving records can get lower insurance rates than drivers with a history of risky driving behavior or accidents. Depending on your driving history, you might or might not want insurance to disregard your driving record.
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It might seem that since there’s no longer a human risk factor involved with a fully autonomous vehicle, insurance rates would fall. That won’t necessarily be the case. Autonomous vehicles are more expensive than traditional vehicles, and the parts required to replace them also cost more. Plus, mechanics who can work on self-driving vehicles must have specialized skills, further driving up repair costs. To make up for that higher risk, insurance providers are likely to charge higher premiums.
Just what the process of buying car insurance for autonomous vehicles is undetermined, too. If drivers have less responsibility for the vehicles, then the focus might change to comprehensive and collision coverage might no longer be the driver’s responsibility.
It’s also possible that autonomous vehicle manufacturers will hold more liability and will be the ones to purchase liability and collision coverage for the vehicles they’ve manufactured. Given the shift, it’s possible that manufacturers could start offering car insurance options when you buy a vehicle. Such a transition could make for a more streamlined purchase process.
The future of car insurance when it comes to self-driving vehicles is uncertain, but as these vehicles become more popular and versatile, the car insurance industry will need to address and answer these questions in the coming years.
Paige Cerulli Paige Cerulli is a freelance content writer and journalist who specializes in personal finance topics. She graduated from Westfield State University and brings more than a decade of professional writing experience to the ConsumerCoverage team. Paige’s work has appeared in outlets including USA Today, Business Insider, and more.
