3 ways self-driven vehicles will affect car insurance in future The new-age world is known for making technological advancements that have proved groundbreaking in Orthodox life. These advancements are made to simplify the complex life of a citizen. In the earlier times, we would need postmen to deliver our mail; but now we have internet. We would need to walk for miles; however, now we can simply make use of any of the road, air or rail transportation. Thus, in the same way, self-driven cars have changed the way how daily commute used to work. Even though they are not yet completely developed but in the near future, they will become an ordinary sight around us. And they will have a major impact on car insurance. The 3 ways in which self-driven cars will affect your insurance are as follows:
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Impact on insurance premiums: The first impact of the self-driven cars in the insurance segment will be on the prices of premium. A car insurance premium is the amount of money that you pay in exchange for the protection that the insurance company provides. This premium is calculated on a varied number of factors such as the past insurance claims you have made, your location, make and model of your vehicle, etc. However, as the statistics show, more than 90% of the accidents are caused due to human error and negligence. Thus, when you make use of a self-driven car, the numbers of accidents will decrease and with that, so will the amount of premium that you pay to the insurance companies. Therefore, the first major change that the self-driven cars will bring is that the car insurance companies will the decrease the premium amount for these policies.
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The bearer of liability: Liability is defined as the legal responsibility or accountability for a given thing. At this very moment, we, the people who drive our vehicles are the sole bearers of liability in the case of an accident. However, that’s not the case with the selfdriven cars; because there will not be any driver who will be causing an accident. If and shall an accident occur, it shall be due to the electronic or technical malfunction of the vehicle. Thus, the liability of an accident, in the case of self-driven cars will be borne by the manufacturers of these vehicles. And, there are already laws being formed in the motor insurance segment for the self-driven cars.
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The downfall of insurance companies: The insurance companies in India and all across the globe function smoothly due to the numbers of customers that they attract with each passing year. The reason why thousands of new and millions of existing vehicle drivers insure their vehicles is to follow the law and protect themselves against unprecedented accidents. However, when we talk about self-driven cars, the numbers of accidents that arise due to technical malfunctions are quite meager. Hence, this will cause a negative impact on the numbers of people buying car insurance policies. Thus, ultimately causing a downfall of the insurance companies.
Hope this article will help you understand the effect of self-driven vehicles on the insurance segment in the future. Good luck and all the best!