If You Hate Auto Insurance, You’ll Love Driverless Cars

A new normal: Ridesharing companies will operate fleets of driverless cars, and owning an autonomous vehicle will no longer just be for the wealthy. Matley believes the cost per mile of owning and operating self-driving cars will be cheaper than driving vehicles back in 2016. In addition to reduced car insurance costs, advances in lightweight construction will lower sticker prices for driverless cars and allow their owners to spend less on fuel.

Crash frequency will have plummeted, and car owners will have a minuscule need for insurance. Some of the largest auto insurance companies will leave the market altogether, Light says, while others will have to overhaul their business models to survive, focusing on commercial ridesharing or product liability coverage, or other services such as car maintenance.

By this point, Light believes, personal car insurance could cost close to 70% less than it does today. Or as he sums up, “We’ll all be having a beer to celebrate.”

Read More:  USA Today