Author: Tronserve admin
Monday 26th July 2021 09:38 PM
Five Reasons Self-Driving Vehicle Manufactures Will Likely Change The Insurance Market
Self-driving car manufacturers, or SDCMs, are hunting to make ownership of autonomous vehicles easier and more affordable for consumers, and they are taking a rather innovative path in getting there. Insurance. Can you comprehend a time when your insurance continually goes down instead of up? It is hard to believe, right? Then again, if SDCMs increase to the car insurance business, this may very well be a reality.
Why Are SDCMs Getting Involved With Vehicle Insurance?
It’s not all altruistic on the manufacturer’s part. Intertwining with insurance assists the manufacturer just as much as the consumer. An adoption obstacle exists for usage of self-driving vehicles. This is especially true whenever it comes to everyday individual drivers and transportation “taxi” vehicles.
Insurers may not offer insurances for autonomous vehicles at all or price it at unaffordable levels. After all, since autonomous vehicles aren’t on the market yet, there’s no mathematical data on accidents, injuries, and fatalities for the insurer to even base pricing upon. This means they’ll likely rollout coverage at the highest price point possible to cover themselves, and that’s a big hindrance for any buyer and a big issue for any manufacturer.
The good news is that SDCMs will have their unique data centers concerning statistics on accidents, injuries, fatalities, and even near misses in relation to their own line of self-driving vehicles. They’ll be able to collect and analyze this information at any given time and generate more ideal auto insurance quotes for their own automated vehicles. By being both the seller and mandatory protection source of the good, SDCMs will knockdown the insurance barrier of availability and affordability for both their own hobbies and those of the consumer.
2. Build Consumer Trust
While self-driving vehicles have long made appearances in movies and books, they have yet to be tested out in real life by consumers. Buyers simply have no idea what to expect nor if autonomous vehicles are a safe and reliable investment. What better way for a manufacturer to say their confident in their product than to insure it themselves?
3. Enhanced Consumer Car-Buying Experience
Few, if any, excite in the concept of shopping for the best auto insurance quotes. With SDCMs providing insurance at purchase, the consumer can completely skip the middleman insurer and the entire painstaking insurance search and comparison process. Insurance would be available immediately at purchase and help offset the total cost of the vehicle, too.
4. Unified Pricing
The entire insurance procedure will be highly simplified for self-driving vehicles. Most insurance pricing roll around caveats of the driver – driving record, age, gender, and so forth. Alterations are made for probability of human error, too. With autonomous vehicles, however, insurance will not have those revolving doors of ifs. Pricing will simply be based on the vehicle itself, or rather based on the software and hardware installed.
If the technology is the same in a given self-driving vehicle, then the price of insurance will be the same whether it’s senior with a few accidents on their record, a newbie driver with no experience, or a businessman logging hundreds of miles each day.
5. Drives Insurance Prices And Liabilities Down
Autonomous cars can be commercialized after SDCM’s confirm that they are safer than cars driven by humans, which will then enable SDCM data banks to determine specific probabilities for accidents and the resulting costs.
Did you know that IBISWorld reported that auto insurance was a $259 billion dollar industry in 2017? To put into perspective just what a huge marketplace that is, the entire U.S pharmaceutical industry was valued at $446 billion in 2016.
Insurance costs will significantly decline with SDCMs focused on accident prevention and offering insurance prices based on real-time accident and fatality data. This should instantly expand the market and make car ownership more budget friendly for everyday consumers.
The insurance reduction in cost should not just be a one-and-done situation, either. Consumers should see continued drops in insurance pricing as car manufacturers and software vendors publish updates and releases to the safety of the self-driving vehicles.
This article is originally posted on
This article is originally posted onINDUSTRYTODAY.COM