Toll Free: 1.877.225.0446

The arrival of autonomous vehicles will upset the insurance industry

In the not-so-distant future, autonomous vehicles will be driving on our roads, as automakers including BMW and Chrysler dabble into mapping companies, a key technology in the development of automated vehicles.

With 95% of road accidents caused by human error, driverless vehicles are bound to make driving much safer. In Canada, accidents claim the lives of nearly 2,000 people annually, and injure more than 165,000.

But what does the driverless vehicle mean for insurance? The one major issue that insurers will have to address is liability. Will the manufacturer of the autonomous vehicle be responsible during an accident? What happens if the driver disables the autonomous driving system and then gets in an accident? Would the mapping software company be responsible if there was an issue with the operating system?

These are all questions that have yet to be answered and it will be interesting to see what types of regulations roll out and how insurance companies adapt.