Oct 19, 2017

Will Cool Car Tech Eliminate Insurance Premiums?

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If you’ve been paying attention to the media, lately you might have noticed that some people are obsessed with the idea of autonomous cars. Volvo have even suggested that the new tech will lead to zero accidents in their cars by 2020. Some people are already suggesting that in a few years we might no longer need car insurance and at this moment, you’re probably jumping for joy. After all, no car insurance means one less bill to pay. But is this really a possibility? The answer I’m afraid is no, and there are a few reasons for this. 

Car Insurance Is A Billion Dollar Industry

If you’ve ever been in an accident, you will know that getting an insurance company to pay up can be a complete nightmare. According to http://www.greenberglawoffices.com/milwaukee-car-accident-lawyer/, after a crash, an opposing insurance company is going to do whatever they can to keep what they have to pay out at a low level. They’re right too because insurance companies are a profit machine and if they pay too much out, they lose money. So, at this point, you have to ask whether there’s any chance of an industry this large disappearing and the answer is no. The only way the insurance companies for cars disappear altogether would be if this new tech was infallible and...it clearly isn’t. 


Hey Volvo, Watch Out

Despite Volvo’s admirable goal, video footage emerged this year of a self-driving car that was attempting to park suddenly accelerating at high speed towards onlookers. Apparently, it had never heard of Asimov’s three laws of robotics. All joking aside, this leaves rather clear evidence that this tech can’t yet be trusted to never crash or act in error. This certainly isn’t the only evidence you can find that the tech just isn’t at the stage where we can trust it completely. Go and check out https://www.tesla.com/autopilot and you’ll see that they say you should have both hands on the wheel when you’re driving. In other words, they don’t trust their tech to keep you safe without your guidance so why on earth should you? 

You might say, right, clearly right now the tech isn’t up to standards but what about in the future? Ah, well now we’re getting somewhere, but there’s still a slight bump in the road ahead. 

Wait, How Much Does This Tech Cost?

The way everyone is talking about this tech, you might expect that it will be available on every car produced from next year onwards. In actual fact, currently, autopilot and other self-driving tech is a luxury not a given. You should expect to pay at least ten thousand more to get this type of tech, a cost that most people won’t be able to afford. So, even if you’re driving a car with cool tech, chances are the person next to you is still riding around in a whip from 2008. 

As you can see then, there’s just no way that the necessity of car insurance will fade thanks to autonomous tech. On the plus side, this site https://www.allstate.com/tools-and-resources has some great options for reducing the costs!