61°F
weather icon Mostly Cloudy

How are autonomous cars going to be insured?

By now much has been written on autonomous cars. They are vehicles equipped with special sensors and terabytes of data that help propel them down the road sans human driver.

There’s an interesting underlying issue on autonomous self-driving vehicles that not many have considered. How are these vehicles going to be insured when the time comes for them to be mainstream?

Well, there is one group that has been considering the issue: the Insurance Information Institute, which is based in lower Manhattan. Michael Barry, its vice president of media relations, answered some of the questions that come to mind when thinking of insuring autonomous cars.

The following is a Q&A with Barry on some of the issues being faced:

Q. What is the insurance industry doing to prepare for autonomous cars?

A. Auto insurers are closely tracking the technological advances being made in the field of autonomous cars, realizing they’ll need to revisit how they price and underwrite policies as more of these cars make it onto roadways.

Q. What are some of the issues that have to be considered?

A. Liability is the key unresolved issue. If a driverless car crashes, can the driver be held liable as the at-fault party, or is it a product liability matter, where the manufacturer of the autonomous car is the liability party?

Q. Will autonomous vehicles lead to not needing car insurance? Or is that not viable? Because it seems as long as you finance a car, the lenders are going to want some insurance on a vehicle.

A. Auto insurance will always be needed because cars get damaged for reasons other than collisions. For instance, millions of auto insurance claims are filed annually because of cars damaged or lost completely due to weather events, vandalism and theft, and those threats will remain.

Q. Will insurance for autonomous vehicles move toward insuring the vehicle and not the driver? After all, doesn’t the driver become less important?

A. Since a policyholder’s driving record is an auto insurance rating criterion today, auto insurers will need to find other ways to assess a vehicle’s likelihood of generating an auto insurance claim.

Q. Or is it a case where more insurance will be required? Seems like the industry might have to insure against the potential failures of the vehicle’s onboard systems as well as the driver who might shut off the autonomous feature and operate under the driver’s control.

A. It is too early to say. The typical car on U.S. roadways is 11 years old so we’re decades away from seeing autonomous vehicles as a common sight.

Like today, an auto insurer will focus on a vehicle’s make/model and the number of miles driven in the future, even when autonomous vehicles become more commonplace.

The additional wrinkle you added — what happens when a driver chooses to shut off the driverless feature in an autonomous vehicle — will be another factor auto insurers need to consider in the future.

As you can tell by Barry’s answers, there is a lot to think about and it’s going to be a long time before all the answers are known. Just be aware, though, that the insurance industry is going to be a few steps ahead of the motoring public when the time comes.

Don't miss the big stories. Like us on Facebook.
THE LATEST
Findlay Automotive donates over $2.1 million to local charities

In an unwavering display of community support, Findlay Automotive Group reaffirms its dedication to philanthropy, underscoring its values as a family-owned business with deep roots in Nevada. Today, Findlay consists of 35 locations across 5 western states and more than 2,500 employees. Findlay is committed to uplifting local communities where they operate.

 
Mecum Auctions returns to Las Vegas

Mecum Auctions returns to the Las Vegas Convention Center for its seventh annual collector car auction in the city through Saturday.

Mecum Las Vegas Motorcycle Auction adds 5th day

Mecum Auctions’ 32nd annual Vintage Antique Motorcycle Auction reaches new heights with an estimated 2,000 motorcycles to be offered Jan. 24-28 at the South Point.

Mecum Auctions back in Las Vegas on Nov. 10-12

Mecum Auctions will return to the Las Vegas Convention Center on Nov. 10 for its sixth annual collector car auction at the venue. The auctions will run through Nov. 12.

Vintage motorcycle auction returns to Las Vegas

Over 1,700 collectible motorcycles cross the auction block Jan. 25-29 at the 2022 Mecum Las Vegas Vintage and Antique Motorcycle Auction at South Point.

Mecum motorcycle auction returns to Las Vegas

Mecum Auctions’ annual vintage and antique motorcycle auction begins Wednesday at the Las Vegas Convention Center. An estimated 1,750 motorcycles will go on the auction block.

Subaru debuts 2022 Outback Wilderness

Subaru of America has introduced the most rugged and capable Outback in the auto manufacturer’s history: the 2022 Subaru Outback Wilderness.

Findlay hosts golf tournament to benefit FEAT

The first-ever Findlay Invitational Golf Tournament will be held Dec. 12 at Desert Pines Golf Club. The tournament will benefit Families for Effective Autism Treatment.

Subaru of Las Vegas, 8 News Now protect the environment

The 8 News Now Living Green Super Recycle Day, sponsored by Subaru of Las Vegas, was a blockbuster success Feb. 1 at UNLV’s Thomas Mack Center. The event is estimated to have drawn more than 5,000 people bringing a vast assortment of items to be recycled.