Insurance To Remain Costly Despite Self-Driving Cars

A report conducted by analysts from Forrester Research says that, despite the promise of autonomous vehicles dramatically reducing car accidents, insurance rates are expected to remain high until at least 2025.

In a comprehensive study where a selection of auto industry experts shared their opinions about how autonomous tech will transform the industry, it is reported that self-driving vehicles could eliminate the vast majority of the 94 per cent of accidents that are caused by human error.

In theory, that should reduce insurance premiums. However, the report says that insurance will remain high because more detailed investigations will have to be conducted to determine which vehicle was at fault in each incident.

“Insurance claims will require more detailed investigations into the cause of accidents, which, along with the cost of repairing more expensive vehicles, will keep costs high,” the report claims.

Additionally, it was concluded that some of the advanced sensors and equipment used by autonomous vehicles will be very expensive to repair or replace. For example, the Lidar sensor being developed by Waymo could cost as much as $7,500, something insurance companies will, naturally, take into account when determining their premiums.