Page 3 - AO Insurance FlipBook

When cars don’t have drivers, who needs insurance?
Automobiles have been getting safer for many years now, due to anti-lock brakes, airbags, and other life-saving features standard equipment on new cars.
These initiatives
are causing much
larger leaps toward a safer automobile. Millions of dollars are being poured by automakers into developing sensors, cameras, and computers that can safely and efficiently react to all kinds of driving situations.
These ”smart cars” are predicted to eventually have a major effect on insurance premiums. Less coverage will be needed, and some insurance experts are currently predicting consumers might be paying as much as 60 percent LESS for insurance coverage.
Don’t think insurers aren’t aware of the possibilities. Warren Buffet, whose company, Berkshire Hathaway owns Geico, in talking about the long term risks to insurer’s business models, recently said: ”If you could come up with anything involved in driving that cut accidents by 30 percent, 40 percent, 50 percent, that would be wonderful. But we would not be holding a party at our insurance company.”
In addition to
automation
cutting the
costs of
accidents
dramatically,
the number
of vehicles on
the roads will
drop, too, because people might sign up for car sharing or other transportation services instead of owning their own vehicle.
The bottom line: Insurers collected $195 billion in auto premiums last year. By 2030 consumers could pay 60 percent less.
Courtesy of the Insurance Institute for Highway Safety.