Technology Self-Driving Cars Might Kill Auto Insurance as We Know It

tom_mai78101

The Helper Connoisseur / Ex-MineCraft Host
Staff member
Reaction score
1,632
Dan Peate, a venture capitalist and entrepreneur in Southern California, was thinking of buying a Tesla Model X a few years ago—until he called his insurance company and found out how much his premiums would rise.

“They quoted me $10,000 a year,” Peate recalled.

For all the concern over accidents involving driverless cars, including Tesla’s troubles with its limited self-driving Autopilot mode, it’s easy to forget one of the supposed virtues of autonomous vehicles: They will make the roads safer. A sophisticated array of lidar, radar and cameras is expected to be more adept at detecting trouble than our mortal eyes and ears. And computers never get drunk, check Tinder or fall asleep at the wheel.

Peate, 40, previously started a company called Hixme, a provider of group health insurance. Now, he wanted to launch a firm specializing in insurance for vehicles with automated-driving modes (and eventually, fully autonomous cars). His experience with the insurer of his old-fashioned, non-driverless car only confirmed the need.

When underwriters and actuaries price insurance on a new type of risk, Peate said, they charge more because they don’t have enough data. With so few Model Xs on the road, its safety record was, at best, opaque. But Tesla Inc. and other carmakers collect reams of data on their vehicles’ operation to improve automation. Peate said he realized “we can get large amounts of data across entire fleets and be able to underwrite without having to wait for years of data” from accidents after they’ve happened.

It also enables an insurer to cut premiums for drivers the more they engage autonomous driving.

 
Last edited by a moderator:
General chit-chat
Help Users
  • No one is chatting at the moment.

      The Helper Discord

      Members online

      No members online now.

      Affiliates

      Hive Workshop NUON Dome World Editor Tutorials

      Network Sponsors

      Apex Steel Pipe - Buys and sells Steel Pipe.
      Top