Despite several dire predictions in 2016, recent data suggests that automated vehicles may not lead to the death of the car insurance industry after all. As a string of fatal accidents involving self-driving cars have shown, liability issues will still affect drivers in Kentucky and across the country. The most likely scenario is that the industry will evolve, not die.
According to analysts with Bloomberg New Energy, revenue for auto insurance companies is unlikely to decline due to self-driving vehicles. Reports in 2016 had speculated that the car insurance industry could virtually collapse by 2040. However, the data since then suggests that is unlikely to happen. To date, car insurance companies have taken steps to evolve their business to address changes in technology, and it’s unlikely that automated vehicles will be any different. It’s not hard to see why liability issues will continue to exist. Computers are capable of making mistakes, and automated vehicles have already failed to detect the presence of other vehicles or people with deadly consequences. It’s hard to imagine a world where automated vehicles are so effective that liability insurance is not necessary.
The analysts at Bloomberg New Energy did say it’s possible that the parties responsible for the insurance coverage could change. Instead of individual drivers insuring themselves, the market could shift to require manufacturers to provide coverage for vehicles piloted with their technology.
In the meantime, drivers will continue to need appropriate insurance coverage. A motor vehicle accident can be life altering, and anyone hurt by a negligent driver may have a claim for their damages. These damages might include medical bills, lost wages, car repair bills or pain and suffering. An attorney with experience in personal injury law may be able to help an injured driver recover on those damages by filing a lawsuit or negotiating with the at-fault party.