December 10th, 2015
Advancements in technology have always had an impact on the auto industry. Many cars are now equipped with GPS systems, back-up cameras and phone systems - while some can even park themselves.
This sort of technology has expanded over the past few years, resulting in the creation of self-driving cars. They work through three separate systems. First, self-driving cars have a processing unit, which tells the car when to turn, brake and speed up. Second, they have a GPS system that navigates the car to its destinations. Finally, the cars are able to determine what the weather is like and what time of day it is and adjust driving style accordingly.
Some people may be wary of a driverless car. However, the fact is that 95 percent of auto accidents are the result of human error. Computers, therefore, are much less likely to cause accidents. Because of this, the cost of auto insurance is expected to fall by 30 percent as autonomous automobiles become more popular.
Insurance savings aren't the only financial benefit the cars will provide. Careless driving is a big contributor of wasted fuel. Self-driving cars are expected to reduce fuel consumption by 10 percent.
While the insurance industry will certainly change, it will still be needed. The adoption of this technology won't become commonplace right away. Plus, the makers of self-driving cars will need to purchase more insurance coverage than before.
Though car accidents are far less common among self-driving cars, there will likely still be some outlying circumstances that result in a crash. However, it will typically be more clear as to who is at fault through the technology installed in driverless cars. Other times, just like today, it may be difficult to determine who caused an accident.
To make sure you have the best car insurance for your car, self-driving or not, compare rates at CoverHound's convenient website.