Less accidents in self-driving cars might not result in lower insurance costs.
Self-driving cars have the potential to reduce car accidents and disrupt the U.S. auto insurance industry, but lower premiums might not happen anytime soon. According to a recent report by Goldman Sachs, insurance risks may shift rather than disappear as autonomy becomes more prevalent. Analysts predict that insurance costs could decrease by over 50% in the next 15 years, though premiums may still see modest growth for the next decade or more due to factors like increased repair expenses for tech-heavy vehicles. Self-driving cars could introduce new risks like cybersecurity threats, possibly necessitating additional coverage. As the industry adapts to these changes, questions regarding liability for accidents involving autonomous vehicles, as well as regulatory standards, remain unresolved. While autonomous vehicles might make driving safer and reduce the need for traditional auto insurance focused on human error, challenges such as rising parts and labor costs are impacting insurance rates for consumers in the short term.
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