A POPULAR insurance company has revealed that a specific car could increase drivers’ insurance policy prices.
Although these vehicles have been touted for causing fewer auto accidents, one insurance company said prices could go up.
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According to the US Environmental Protection Agency (EPA), self-driving vehicles have five defined levels of automation, ranging from Level 0 to Level 5.
“The most advanced vehicles available today are already functioning at a Level 2, and many manufacturers are promising higher levels of automation in the near future,” the EPA explained.
Self-driving cars, like Tesla’s Autopilot or GM’s Super Cruise, are provided with voluntary safety guidelines for manufacturers.
Progressive, a leading auto insurance company, delved into how autonomous cars will affect insurance in the years to come.
“The hope is that, among other benefits, autonomous vehicles will reduce the significant number of crashes currently caused by distracted driving,” Progressive stated.
“Driverless cars may be able to react more quickly to input than the human brain. Manufacturers and researchers hope the safety features implemented in these vehicles will reduce crashes and, therefore, human life lost in accidents.”
As per Consumer Reports, most cars have some kind of driver assistance feature, such as automatic emergency braking (AEB) or blind spot warning (BSW).
Progressive noted that these features will help a vehicle maintain control and safety in compromising situations without human intervention.
In turn, drivers would expect that their insurance policy rates would decrease.
Generally, insurers view drivers with fewer accidents as lower risk, potentially resulting in discounted rates or lower premiums.
Conversely, drivers with a history of accidents, are often seen as higher risk and face increased insurance costs
However, Progressive predicts that the higher cost of vehicles with driver assistance features could lead to more costly insurance.
“Technologically advanced vehicles require specialists to make repairs, which means the standard automotive repair shop may not be able to service your car,” the car insurance company wrote.
Drivers wonder if high-tech cars will be the downfall of auto repair shops.
Car insurance tips
Here are some ways to lower monthly car insurance rates:
- Increase the deductible – this may increase the amount drivers must pay in an accident
- Ask insurance carriers for discounts
- Slow down on the road
- Keep off the cell phone behind the wheel
- Improve credit scores (in some states)
- Bundle insurance policies
Source: Liberty Mutual
“The reality is that the things consumers want in their cars hese days (lane assistance, collission avoidance etc) means a lot of new extra senors, cables and computers that makes stuff harder to repair,” one driver commented on Reddit.
“One of the fundamental ‘rules’ when it comes to product design is that for each new feature system you add, you negatively affect the overall repairability of the final product,” they added.
Additionally, autonomous vehicles could be subject to new cybersecurity threats, increasing the need for cyber coverage for insurers.
Insurance companies might also need to develop new types of policies that address the unique risks associated with self-driving cars.
This could indicate a shift away from traditional auto insurance in favor of product liability, which would protect businesses from claims related to injury caused by defective products they manufacture, distribute, or sell.
Progressive notes that it’s still difficult to ascertain exactly how driverless cars will impact the car insurance industry.
