Consumers would change insurer for autonomous vehicle discounts
Published: May 31, 2018
Updated: July 24, 2018
Author: Luke Jones
CATEGORY: Car Insurance
The auto insurance industry is bracing itself for future autonomous vehicles to deeply disrupt the market and change how vehicles are insured. Liability will change, while collisions will decrease, and premium costs fall. More importantly, consumers will change how they view and purchase auto insurance, according to a new survey.
Market research firm J.D. Power released the results of a survey that sought to see how consumers will view auto insurance alongside self-driving cars and advanced driver assistance systems (ADAS).
22% of respondents said they would be interested in buying a “highly automated” car as their next vehicle. Moreover, 40% said they would be willing to switch auto insurer if the new provider offers a discount for autonomous vehicle or ADAS use.
J.D. Power also found insurance is the third biggest reason why consumers would want to buy an ADAS vehicle, in order to get discounts. The highest reason was lower accident risk (26%), reduced driving stress (24%), followed by insurance (15%).
Despite the concept of a fully automated vehicle being one where the driver has no input in vehicle control (even lacking a steering wheel and pedals), motorists are not quite ready to give up liability. The survey found 40% of participants believe drivers have some responsibility when a collision happens in an autonomous vehicle. 22% say they would put liability on system OEMs and vehicle manufacturers for collisions.