Autonomous vehicles are the revolution in the automobile industry. Sources reveal that as many 50,000 autonomous vehicles are expected to hit the highways of Canada within the next few years. Uber has recently resumed the testing of autonomous vehicles in Toronto. But the testing was suspended in March 2018 when the self-driving car killed an American pedestrian in Arizona. The first fatal case raises future concerns and the impact of self-driving cars on automobile insurance. At lawyers will guide you the about future impact on the claim for the autonomous vehicles.

Autonomous vehicles are safe:

With self-driving cars, the risk of drunk driving or distraction is totally waived off. As per one report, approximately 1.2 million deaths in 2014 were due to road accidents. Around 94% of car crashes are due to human error like drunk driving.  As per the National Safety Council, approximately 40,000 Americans died in 2016 due to road accidents.

According to a report by Matthew Avery of Thatcham Research in the UK, around 23% of motor claims relate to parking out of which three quarters occurred during reversing. This relates to £1.7bn of claims caused by human error. With the advent of autonomous cars, all such huge amounts of claims will be eliminated to some extent.

Autonomous cars to change the legislation in the World

Currently, all the countries of the world have a different jurisdiction but everywhere all the laws are written keeping in mind that the cars are being driven by human beings. With the next generation, preparing for autonomous cars, this demands change in road laws.

Autonomous cars and their future impact on auto insurance:

1)    Claims to reduce down: Majority of the claims at present throughout the world are due to the negligence in driving. This claim will be reduced significantly with the invention of autonomous vehicles as much as 50-80%.

2)    Fewer chances of fraud:  Autonomous cars will give the exact telematics and sensor data which will almost eliminate the chances of fraudulent.

3)    Lower premiums: You need to pay lower premiums once the automated cars will hit the road.

4)    The shift of liability from drivers to the vehicle: With the advent of autonomous vehicles, liability is surely going to shift from drivers to vehicles and not on the manufacturers. In the UK a draft on AEV bill is getting prepared which shifts liability from drivers to vehicles.

5)    No link with the claim history and driving behavior: Instead of drivers’ age and claim history, software levels will be the basis of premium pricing.

6)    Manufacturers eliminating the need for auto insurance: Over the years, the argument goes for the single pricing of the car and therefore, is a debatable topic till today. For the sake of customer service, manufacturers may extend up to a certain limit.

Auto insurance will continue to exist:

This doesn’t mean that in the near future, there will be an end to auto insurance. Auto insurance will continue to remain but in a very different way. Some hybrid model may be developed by the insurance companies. Visit for more details.

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