A report by the company Autonomous Research predicts driverless cars could have a massive effect on the price of UK insurance premiums, with reductions of up to 63 per cent by the year 2060.
The company says that semi-autonomous car technology, like adaptive cruise control and emergency braking, has already had an effect on insurance premiums. In fact, it is estimated semi-autonomous features are responsible for a 14 per cent cut in accident rates.
Motoring industry insurance makes up a massive 42 per cent of global insurance, with human error being the most influential reason for that. With driverless technology growing more advanced, the margin for human error is becoming narrower. For example, one third of motor-related insurance claims are due to rear-end collisions – something which can now be prevented in many circumstances with semi-autonomous tech.
The year 2025, according to Autonomous Research’s report, will be the turning point for insurance premiums, as autonomous technology grows increasingly popular.
Autonomous Research predicts that by the year 2060, driverless cars will be dominating the roads and as a result, motorists making an insurance claim will fall from 9 per cent to round 2.4 per cent.
