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As technology advances, the prospect of fully autonomous cars driving along major roads becomes increasingly likely. With this exciting innovation, however, comes new questions about the future of the auto insurance industry. As self-driving cars become more commonplace, it is essential that you consider how these vehicles will impact insurance policies and the industry as a whole.

Insurance for self-driving cars raises several concerns, including determining who is at fault in the event of an accident. In such a scenario, it can be challenging to determine if the fault lies with the vehicle’s software or the human driver. Additionally, the technology behind self-driving cars is continuously evolving, which can prove to be difficult for insurance companies in terms of keeping up with the latest advancements and in providing accurate coverage.

What are autonomous cars?

Autonomous cars, also known as self-driving cars, are vehicles that use sensors and advanced technologies to detect their surroundings and operate without human intervention. They can navigate roads, stop at traffic lights, and avoid collisions, among other functions.

As self-driving cars become more common, it’s crucial that they are extended insurance coverage that accounts for the unique risks and challenges that they could eventually face. An appropriate autonomous car insurance can protect vehicle owners, passengers, and other drivers from liability in the event of an accident.

Types of Autonomous Car Insurance

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There are three insurance coverage types that should be suitable for self-driving vehicles. These include:

1. Liability Insurance

This is the most basic form of insurance for autonomous cars. It covers damage and injuries that occur where the autonomous vehicle is at fault for an accident. Liability insurance may be required by law, depending on the state and the level of autonomy of the car involved.

2. Collision Insurance

This covers damage incurred by the self-driving car after a road accident. This type of autonomous vehicle insurance may also cover repairs or replacement of the auto if it’s deemed a total loss.

3. Comprehensive Insurance

Comprehensive insurance provides coverage for non-collision events, such as theft, vandalism, or natural disasters. It’s typically an optional coverage that car owners can add to their policy.

Challenges with Insurance for Autonomous Cars

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The concept of insuring standard person-driven cars is not new. Self-driving cars, however, are totally different as they present difficulties on how they can be covered. The following are common challenges for a prospective insurer:

1. There is little to no data on self-driving car accidents.

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This is one of the biggest challenges facing insurance companies concerning self-driving cars. As these vehicles are still relatively new, there isn’t enough information to assess risk levels accurately and set the appropriate autonomous car insurance premiums.

As driving technology advances further, autonomous vehicles will continue to become more complex, incorporating new and advanced features. This will make it even more difficult to predict how self-driving cars will behave in different scenarios and how they will perform when faced with the possibility of an accident.

2. There is uncertainty in determining fault.

In a vehicular accident involving a self-driving automobile, it’s not always clear where the fault lies. Many will argue that the culprit is the car’s programming. Some will put the blame on the manufacturer. Still, others will say the human driver of the other vehicle involved in the accident is the one at fault.

3. The potential for cybersecurity attacks is high.

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Self-driving cars rely on computer systems and networks to function properly, and this can be used to expose individuals and businesses to various cybersecurity risks. Hackers could exploit vulnerabilities in the car’s software or network to gain unauthorized access, take control of the vehicle, steal data, or cause damage.

The potential for cybersecurity risks associated with self-driving cars is a concern for many insurance companies. In the event of a security breach, the cost of repairing or replacing a compromised vehicle and resolving the problems caused by the breach could be substantial. As a result, insurance companies may need to consider the risk of hacking and other security breaches when setting premiums and developing policies.

4. Autonomous car insurance can set policy changes.

As self-driving cars become more prevalent, insurance policies and premiums may need to adapt to account for new risks and challenges. This could involve making significant changes in liability coverage, insurance pricing, and policy structure.

Key Takeaway

The idea of self-driving cars and insurance is still in the developing stage, but it can become inevitable that coverage for them will have to be looked into more seriously at some point in the future. Given the unique risks and challenges posed by autonomous vehicles, insurance companies will need to consider introducing changes in their existing policies for vehicle protection.

Apart from working with insurance providers, self-driving car owners should take steps to reduce their risk of accidents and damage. This means regularly visiting professional auto shops for maintenance work and keeping up with software updates and other safety features. Doing so keeps the car in good working condition, and this minimizes the risks of accidents.

Keep your car accident-free with top-notch maintenance services from Saul’s Autotek.

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Staying away from road accidents can be difficult at times. Still, if you have a well-maintained car, the chances of getting involved in a mishap can be greatly reduced. That’s what Saul’s Autotek wants for you.

We are the premier auto repair center, manned by professional and certified car mechanics. We service some of the top vehicle brands, including exclusive Tesla services in Thornton. Call us today and we guarantee top-of-the-line maintenance services.