Reduced accidents from self-driving cars may not lower insurance costs
Autonomous vehicles have the potential to reduce car accidents and disrupt the U.S. auto insurance industry, but this may not result in lower premiums right away. Goldman Sachs suggests that while insurance costs could decrease by more than 50% over the next 15 years, it may take some time for this to be reflected in premiums. The shift to autonomous vehicles might change the types of risks covered by insurers, with new challenges like cybersecurity threats potentially increasing the need for cyber coverage. Companies like Progressive and Berkshire Hathaway anticipate significant changes in the car insurance business once self-driving cars become widespread. However, immediate challenges such as higher repair expenses and tariffs may continue to impact insurance rates for consumers.
Leave a Comment
Popular News
Recent News
Weather
82%
2 MPH
-
19° June 16, 2025 -
25° June 16, 2025
