‘You won’t need insurance for self-driving cars’

self-driving cars

Image courtesy: Freeimages.com/Michal Zacharzewski

The concept and the launch of autonomous cars is the most debated topic in the insurance industry, and for a good reason. There is the possibility of auto insurance vanishing if only autonomous cars take to roads and get rid of the driver, which automatically transfers the liability to the manufacturer, according to an article by Forbes.

After all, if you are not the driver, why should you pay for the damages of accidents by the car? The launch of completely autonomous cars is more than a decade away but giving away control of the car is relinquishing liability completely from driving. This might affect the $200 billion private insurance industry. This is according to an article in the Yale Journal of Law & Technology.

This change might come also with a complete surrender of privacy on the part of the driver. All the communications and information collected by the smart car might be managed by the auto manufacturers who now take on the responsibility of driving, the article says. If there are a few people who would want to retain privacy, they might have to pay for it.

The trend of setting up black boxes in cars which will provide the insurance companies with information during an accident, is already taking off. Auto insurers are promising to cut down on the premium if an owner agrees to allow a black box, which is also a breach of privacy to the driver.

Read the full article on Forbes, here.

Read the essay on Yale Journal of Law & Technology here.

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