Auto Insurance Won’t Crash When Driverless Cars Arrive

MAX
All right, everyone, we’re about to take a deep dive into the future and, well, a future where your car might be doing more of the driving than you. That’s right, we’re talking driverless cars today. And with that comes the big question of what happens to good old car insurance.

EVA
It’s something a lot of us are thinking about. It’s a big technological shift on the horizon and you know it’s going to shake things up a bit.

MAX
Exactly, we’ve all seen the headlines about self driving cars right? But this article from Cheap Full Coverage Auto Insurance, well, it really got me thinking about the insurance side of things. Yeah, they paint a picture of 2030 where you’re cruising along hands free, and it makes you wonder, do you even need car insurance in that world?

EVA
Well, not so fast. The article points out. This transition to, you know, a fully autonomous world, it’s not going to happen overnight. The National Hwy. Traffic Safety Administration and HTSA. They predict a gradual rollout of what they call automated driving systems, or ADS for short.

MAX
OK, ADS. Got it. So tell me more about this gradual roll out. What exactly are these automated driving systems?

EVA
Think of it like levels in a video game. NHDSA has outlined 6 levels of ADS starting with, you know, like basic driver assistance features, lane keeping and that sort of thing. And it gradually works its way up to fully autonomous vehicles at level 6. So each level is basically a step closer to more advanced self driving capabilities.

MAX
So we talked about those systems that use things like Lidar and computer vision.

EVA
Absolutely, Yeah, those technologies are really the core of how these systems understand what’s around them. And as you move up those ADS levels, the tech gets more and more advanced, the car gets better at handling the driving itself.

MAX
Makes sense. A gradual approach like that probably gives everyone involved, Car companies, lawmakers, even us regular drivers time to adjust.

EVA
Exactly. And from the insurance perspective, it gives that industry time to figure out how to, you know, how to assess risk in this new landscape. Because think about it, insurance companies have built their entire models around, well, us human drivers with all our quirks and mistakes. Driverless cars, in theory, shouldn’t be making nearly as many mistakes.

MAX
Right. It almost sounds like a whole new ball game for these insurance companies.

EVA
It is in a lot of ways. As we move through these ADS levels, insurance companies can gather data, you know, see how these systems are actually performing in real world situations and then adjust their models accordingly.

MAX
OK, but even with all this advanced technology, these super safe driverless cars, the article still brings up the elephant in the room accidents. Because let’s face it, technology, it isn’t perfect.

EVA
No, you’re right. Even with, you know, even with the best tech, there’s always that chance something could go wrong. And the article, it brings up some pretty unsettling possibilities with driverless cars.

MAX
Like what? Give me the scary scenarios.

EVA
Well, think about software failures. I mean, we’ve all been there, right? Yeah. Computer crashes, you get that blue screen, your phone just freezes up.

MAX
Oh yeah, not fun.

EVA
Now imagine that happening when you’re going down the highway at like 60 miles an hour.

MAX
Yeah, that’s not the time for a system update.

EVA
Definitely not. And then there’s the whole issue of hacking, which is becoming a bigger and bigger concern. You know, as these cars get more connected, they also become more vulnerable, right? Someone taking control of your car remotely is a pretty scary thought.

MAX
Straight out of a movie. So, OK, if these risks are so different from like our old school car accidents, are we going to need completely new insurance policies?

EVA
That’s a good question, and it’s something the article really gets into. It seems like, at least at first, we’re probably not going to see a complete overhaul of car insurance. More like we’ll see the existing policies adapt.

MAX
So like add-ons or like riders on the policy to cover driverless car stuff?

EVA
Exactly like your policy might have something about software malfunctions or, you know, unauthorized access to the car system. It’s about taking those frameworks we have and tweaking them to fit these new risks.

MAX
Makes sense. Kind of like how cybersecurity insurance is a thing now just because businesses are facing those online threats. It’s like a sign of the times, I guess.

EVA
Exactly. And this whole evolution of insurance kind of ties into another thing the article brings up, which is that even with all the self driving cars, humans are still going to be part of the equation for a while.

MAX
Oh for sure. It’s not like everyone’s going to wake up tomorrow with the driverless car. It’ll be gradual, right? We’ll have regular cars and these autonomous vehicles sharing the road. And well, Speaking of sharing the road, what happens if there’s an accident? Like someone in a regular old car rear ends your super high tech car? Who’s responsible then?

EVA
That’s where things like uninsured or underinsured motorist coverage, the kind of stuff we already have, becomes even more important.

MAX
So that would cover you if the other driver was at fault but like didn’t have enough insurance or any.

EVA
Exactly. You want to make sure you’re covered no matter what, whether the at fault driver is, you know, a person or a computer system.

MAX
It’s a good reminder that even as technology changes, some things stay the same. Got to protect yourself.

EVA
For sure, and the article also makes a point of saying that comprehensive coverage is still going to be key. I mean things like theft, vandalism, natural disasters, those can happen to any car.

MAX
That’s a good point. It’s easy to get caught up in the futuristic stuff, but it’s sometimes the like the more old school risks that we need to think about too. So based on everything we’ve talked about, it doesn’t seem like the auto insurance industry is going anywhere soon, right? But it’s definitely going to be interesting to see how it all plays out.

EVA
Yeah, it’s like it. It’s not that robots are replacing the whole car insurance industry or anything.

MAX
Right, exactly.

EVA
It’s more like the robots are giving them a whole new set of problems to solve.

MAX
It’s definitely a transformation, not an extinction. Yeah, And the article even brings up some really interesting questions about, like, how insurance itself might have to adapt. You know, right now, we think of insurance as being tied to the driver, your record, your age, where you live, all that. But if cars are becoming more autonomous, could we see a world where it shifts more towards the manufacturers? So instead of insuring me and my driving record, we start insuring the car’s software.

EVA
Yeah it would be a huge shift. Like imagine Tesla insuring its self driving software or Google ensuring its mapping data that these cars are using. Because the thinking is if something goes wrong, it’s probably the tech, not the person behind the wheel.

MAX
Wow. But that brings up a whole other set of questions, like how do you even figure out who’s liable in a driverless car accident? Would these companies then have to like prove their software didn’t mess U?

EVA
Exactly. And those are all things that, you know that regulators, manufacturers, insurance, comanies, they’re all trying to figure that out right now. It’s all pretty new territory. And then there’s the whole cost factor. If these companies are suddenly shouldering more of the insurance burden, does that mean pricier cars?

MAX
It’s crazy how many things this impacts. We always hear about the technology of driverless cars, but this article really got me thinking about the ripple effects. Like who knew insurance was going to be part of this whole thing?

EVA
It really shows you how technology doesn’t just like, exist on its own. It sets off all these other changes. And for anyone listening, that just means staying informed is going to be more important than ever.

MAX
So true. It’s not just about understanding the tech anymore, it’s understanding how it’s going to change, well, everything. How we get insured. How we stay protected.

EVA
Exactly what kind of coverage are you going to need when your car is basically driving itself and who are you even going to buy that insurance from? A lot to think about as we head into this, well, this exciting but kind of unknown future.

MAX
A future that might be a lot closer than we think. This deep dive really gave us a lot to consider. Thanks for breaking it all down with me.

EVA
Anytime Always fun to take a deep dive into a future with robots and insurance.