Insurance Rates Could Drop 30 Percent Due to Autonomous Cars, Ride-Sharing
May 27, 2016—Automotive insurance premiums could drop by as much as 30 percent over the next 25 years due to the rise of autonomous vehicles and ride-sharing, a recent study from Deloitte University found.
The two main factors contributing to this decline are a reduced number of vehicles on the road to to ride-sharing, autonomous and semi-autonomous technology limiting the number of accidents.
A growth in commercial and product-liability insurance combined with a decrease in personal insurance will be another factor. A different combination of new types of coverage, such as autonomous vehicle liability, will offset the decreased need of driver liability coverage.
The study found that although the cost per claim will rise initially due to the cost of repairing advanced technology, the cost will eventually drop dramatically as autonomous and semi-autonomous technologies become more prevalent.