Driverless Cars Will Lead To Lower Motor Premiums
Although the technology is in its infancy, it is expected that a rise in driverless cars over the next couple of decades will have a positive impact on motor insurance premiums and bring costs down.
A report issued by consultancy firm Fehr & Peers estimates that 50% of traffic in the USA will be driverless cars at some stage within the next twenty to thirty years. It is estimated then that by this stage manufacturers will have cultivated the technology and make it economically viable for vehicle owners.
Motor insurance makes up to around 40% of global insurance premiums. The root cause of nine tenths of all accidents that occur on the road is driver error. If the chances of accidents are lowered due to the technological advancement of driverless cars, then this will be reflected in a reduction of motor insurance premiums.
Investment research company Autonomous have estimate that in the US the percentage of motor accidents could drop as low as 2.4% within the next thirty to forty years. They further go on to predict that the average premium will be $334 by 2060. In the UK the research company stated they expected a 63% drop in motor premiums within the same time frame as its expected driverless cars become more common place on UK roads.
Although driverless cars will not have an overnight impact on insurance rates, gradually they could very well bring costs down for road users in the UK.
For impartial insurance advice or for a quote on vehicle insurance contact B&M Insurance.
Author: James Savery