What is the Future of Auto Insurance?

​With the advent of technology, advancements in cars are being talked about in the auto industry. Flying cars? No, that’s too ahead of the future. It is predicted that full self-driving technology will be applied in newer cars to be released in the next few years. Is there still a need for insurance? Let’s find out in this article.

Future of Auto Insurance
Innovations in technology can lead to greater things. There are predictions regarding the future of auto insurance.

• Safer roads - Since self-driving cars will soon create a buzz, it is foreseen that roads will be less prone to accidents, since the cars operate by themselves. In a study conducted in 2015, about 90% of car collisions are caused by reckless driving. Of course, it is done by humans. Self-driving technology aims to reduce accidents because distractions such as texting while driving and driving under the influence of alcohol can be eliminated.
• A decrease in vehicle ownership – Public transportation might also aim for autopilot technology. Therefore, if you want a car, it is the best time to have one because the traffic jams will be reduced as well. On the other hand, for a cheaper cost, if the government transportation is better, people might rely on it.
• The higher cost of fault determination in accidents – If there is a recorded accident, it will get complicated when determining who’s at fault because the cars are more automatic as predicted. The insurance company will evaluate the ‘driver’ first, then the state of the vehicle.
• Insurance for manufacturers – Drivers and car owners still need to secure car insurance. Moreover, the primary concern of insurance companies is the manufacturer or dealer of the car that uses driverless technology because they made and sold the car.

You’re wrong if you think that car insurance is not required to be obtained by car owners if the time for the driverless technology will come. It is the best time to get a guarantee because the price can be lower than usual since there are fewer risks on the road involved. 

Insurance will not hurt you. Technology can sometimes fail. What will be your saving grace in case self-driving cars were unable to operate while you’re on the road? It’s best to always be prepared by having auto insurance.

At Insurance Marketplace, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (541) 779-0177 or Click Here to request a free quote.