Autonomous Vehicles Could Send Insurance Premiums Tumbling Photo:

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Kez Casey | May, 27 2016 | 0 Comments

Tired of your insurance premiums going up year after year? Autonomous vehicle could bring you some relief, with analyst firm Deloitte suggesting self-driving technology could reduce premiums by up to 30 percent.

Changes in the way people use their cars will also shape changes to the insurance market, with a rise in vehicle sharing also targeted as a factor in keeping premiums down.

The advanced accident detection and avoidance technology packaged into autonomous vehicles reduces the associated risk to insurance companies - one of the key areas your premiums are based on.

Of course, the safety of your suburb won’t change, and you’ll still be risk-assessed on the vandalism and break-in risk of your area and parking situation, and charged accordingly.

Reduced premiums for cars less likely to be involved in an accident are nothing new however, with Volvo having previously highlighted the reduced premiums offered to owners of its City Safety equipped vehicles, owing to their ability to avoid low speed incidents.

“This is by no means a death knell, this is an opportunity,” said Deloitte principal, John Mately.

But Deloitte was quick to point out that the changes will be evolutionary, taking ten years or more for the full effects to be felt in the insurance market.

While insurers face a potentially reduced income from motor vehicle insurance owing to the changes in technology, other areas were identified as potential growth markets.

Areas of liability insurance present new opportunities for shared or co-owned vehicles, and the future may see vehicle users requiring their own personal insurance on top of the vehicle insurance itself.

But one thing is for sure, just as the vehicles we drive are set to change, so is the range of services we use to support our vehicles.

MORE: Insurance | Autonomous | Future

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