Monday, November 28, 2016
The effect of Self-Driving and Ride Hailing on Car Insurance
Author Bio : Anand Rajendran is a freelance writer living in Chennai, India. His interest in personal finance and budgeting began when he was earning an MFA in theater, living in one of the most expensive cities in the country (Chennai, TN) on a student's budget. Today, he writes for a number of websites and keeps up his own Classic Car Insurance company named Sysive in UK.
We are much aware of the fact that the world is fast moving and everything is getting upgraded. Today’s generation wants everything to be spontaneous and faster than ever before. Technology, yeah that is what everyone is swooned around with. Smart phones and gadgets have become the norm in today’s world. Millions of applications are available for a variety of services for us.
Travelling from home to work in heavy traffic is a herculean task for any of us. After the long hours of driving we are halfway to go into a deep slumber. But, now we do not need to worry about driving and getting tired. We have the ride sharing and autonomous cars which are well equipped for service. Take out the smart phone, tap on the mobile app and we have our cab at our doorstep to be escorted.
Modes of operation of the vehicles can be categorized as self-driving or human driving. Technology is disrupting the whole automobile industry and the insurers are in bits with this upgrade. Manual driving is recognized by providing a license to the person. Self mode driving is done only under authentic supervision of a human or a manifested design to control the system.
People with cars do have an insurance to claim if at all they happen to get into accidents. Most of us will be having a comprehensive insurance, so it covers everything. With people opting to ride sharing driving jobs, the insurance policies may differ. A new scheme is in analysis of the insurance of the drivers who use ride sharing apps for income.
It is mainly for the person in distress to be compensated for the mistake done by someone else. The concept of compensating for a human error seems to be easy and to the point. What happens when the same thing is done by a machine? Will that be covered by an insurance company? Insurance are generally made to cover any kind of human error what if, it is not one.
Conventional cars are going to be replaced by self-driven cars in next 4 years. These cars are specifically designed to avoid all the human errors and keep us safe. It is a good move by the tech gigs and the automobile manufacturers, there are in for a great deal of business. What about the car insurance companies, how is their business going to be like?
That is the question which the insurers never wanted to listen, is it going to be a doomsday for them? Compensation for car accidents will cover most part of the insurance cover we have. A liability is always available for a person when they have chances of getting into a disaster. But, in case of self-driven cars, there is no chance of liability for an accident itself.
Property damage can be easily covered as it will be minimal and not massive. If, we injure a person physically and they get grievously hurt, then the consequences are different. It is stated that a cab driver has to have coverage of $30,000 coverage in case of accidents. If we cannot afford such a huge amount, it is mandatory that at least we have insurance for $5000.
Self-driven will be on the roads in large numbers soon and people have started to make pre booking. A one time investment for life, all we need to do is maintain it in a good shape. It will take us to places wherever we would like to go, and we can have a safe ride. These cars are designed with many features to go with, crash avoidance and forward collision warning.
There will be a huge amount of the decrease in our premium costs if we are buying self-driven cars. As they do not come under the accountability of human error, so that cost can be taken out. This will make the premium cost of our insurance to be more cost effective and reliable. We can be charged indirectly though, by the manufacturers of these cars.
Just imagine, if the insurance companies ask the manufactures to bare the liability cost. Will they not be adding that cost the vehicles cost? So, we need to think about it the other way round as well. We think to save money by paying less for our insurance. But, there are chances that the saving from insurance may become as expenditure on the autonomous car.
This scenario applies to the people who will be purchasing the self-driven cars. There are a few people out there, who love to drive and maintain a good track record. They will stick to the cars which they already have for themselves and pay for the insurance. Insurance companies may have to bring down the premium costs for our insurance.
The roads are kept safe, by the people who drive safely and the self-driven cars as well. A cut down in the insurance premium cost will be considered as the best option. If, people start to claim huge amount for the loss incurred then the company has to do it from their pockets. So, they have looked into the gravity of the situation and then decide upon it.
If the roads become free from danger of crashing and injuring then the need for insurance will go down. To keep up with the customers, the companies have to decrease the pricing amount. That will make the business to be intact and will not lose its customers. Any changes made to the policy, it is better that they keep us posted with it.
No matter whatever changes are happening around the world, people will still buy an insurance policy. A car is the most prized possession of an individual and they ought to keep it secured. Hence, people will definitely keep their vehicles insured, in case if they happen to meet with a mishap or theft of the car.
While, people are adapting to all the changes, we are not sure about the changes in car insurance. Each jurisdiction will have its own set of rules for the people to follow. The insurance policy is also dependent on the changes the law would apply. We are not exactly sure about how much of these changes will actually be affecting us.
Cars maybe of any kind, it doesn’t matter, it is good that it insured according to the law enforcement. The prices of the commodities have been increasing on a regular basis. So, we cannot rely on the fact that, our premium will remain at a lower price. It will change periodically in effect, of the changes happening in the market for the insurance companies.
We own a conventional car, self-driven car or just a normal car to drive around. It is good that we keep it insured for our own safety and security. So, go ahead and compare the rates for the insurance companies. Any which way, we need to have it insured, thus it needs to be cost effective. Check out for the ratings posted by the customers for the companies. Market rates may be varied according to the coverage we are making. Give a closer look at the details before signing up for the insurance and spend wisely.