How Will Driverless Vehicles Change Laws And Car Insurance Policies?

Technology, specifically in the transport sector has advanced exponentially and as compared to before, driving has not only become safer but also efficient. Driverless cars are cars that have the capability of going to specific places without the necessity of there being a driver. These cars are also known as autonomous vehicles or robot cars are capable of sensing their environment and moving effectively with little or no human input.

With the introduction of these cars, it means that other various things will also have to change among them being car insurance and car laws. If you are looking forward to owning a driverless car one day, here is what you need to know about the impact that these cars will have on car laws and car insurance.

How Driverless Cars Will Affect Car Insurance

You are quite aware that car insurance takes the part of covering risk in case accident happens. You will in return pay premiums depending on the probability of the risk happening. Since self-driving cars will have a different mode of operation that could affect the probability of risks, here is how driverless cars will affect car insurance.

Reduced Premiums

Driverless cars are estimated to drastically cut down accidents that are caused by human error. As a result, the probability of accidents will be lower and so will be the premiums paid for such risks. Experts say that driverless cars will remove the risk attached to driving. Car owners will therefore pay lower premiums for driver-related accidents.

However, this will affect car insurance companies because now they will be getting low premiums and therefore a reduction in gross income. Experts predict that there will come a time when owners of driverless cars won’t need to carry the personal accident insurance cover but will instead opt for minimal legal coverage. Also, the government regulations may change to a point where some car insurance policies will no longer be a legal requirement.

How Driverless Cars Will Affect Car Laws

Several car laws will have to be scrapped to accommodate driverless cars because there will be little or no human input. However, many other laws will have to be put up because driverless cars will operate under different operations in comparison to their human-operated counterparts. In places where driverless vehicles are in use either fully or for tests, laws have been set up specifically to control their operation.

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