Technology has come a long way in the last decade, and one of the most exciting advancements is the rise of self-driving cars. Once a futuristic dream, autonomous vehicles are quickly becoming a reality, and with companies like Tesla, Waymo, and Uber pushing the boundaries, it’s only a matter of time before we see more of them on the roads.
But as the future of transportation becomes more automated, one big question comes up: How does auto insurance work for self-driving cars?
This is something we get asked about more and more in our office, especially as drivers begin to feel the shift toward a tech-driven future. So, if you’re curious about how your insurance policy might change when you no longer have control behind the wheel, keep reading to find out.
Who’s at Fault in a Self-Driving Car Accident?
Traditionally, auto insurance has worked in a pretty straightforward way: if you’re at fault for an accident, your insurance company covers the damages (up to your policy limits) to the other vehicle or property, and often your own as well. But self-driving cars complicate this a bit. If you’re not actively driving, who’s responsible?
In a world where self-driving cars rule the road, liability could shift from the driver to the manufacturer or even the software developer. Imagine being in an accident where your car’s autonomous system fails to brake in time—who do you call? While it’s clear this is still uncharted territory for both insurers and manufacturers, some patterns are emerging. In cases where human drivers remain in the vehicle but rely heavily on advanced driver assistance systems (ADAS), such as Tesla’s “Autopilot” or Cadillac’s “Super Cruise,” drivers may still bear responsibility if they fail to take control in an emergency.
On the flip side, in a fully autonomous vehicle (Level 5 autonomy), where no human intervention is required at all, the manufacturer or software provider may be liable. And that raises a big question for the future of insurance: Will auto insurance as we know it even exist, or will it shift to product liability coverage?
How Does Auto Insurance Work for Self-Driving Cars Right Now?
Right now, most of the cars on the road aren’t fully autonomous—they’re semi-autonomous at best. Think adaptive cruise control, automatic lane-keeping, and emergency braking. So, if you’re driving a vehicle equipped with these features, you still need the same basic auto insurance you’ve always had. Liability, comprehensive, collision—it’s all still necessary, because you’re still considered in control of the vehicle.
As the technology improves and we inch closer to Level 5 autonomy, where the car completely drives itself, insurance may start to evolve. Some insurance companies are already preparing for this by offering policies that cover incidents specific to automation, such as system malfunctions. Tesla, for example, has already launched its own insurance program in some states, claiming it can offer lower premiums by analyzing real-time driving data from its cars.
If you’re driving a semi-autonomous car, here are a few things to keep in mind about your auto insurance:
- You’re Still in Control: Even though your car might be able to handle most of the driving, you’re still considered the driver. Your insurance policy will reflect that.
- You May Be Charged Based on Your Car’s Tech: Some insurers may start taking into account the automation technology in your car when setting your premiums. The logic here is that self-driving features could reduce the likelihood of accidents, which means fewer claims—and potentially lower rates.
- You Need Full Coverage: Self-driving cars come with advanced (and expensive) tech. If you’re relying on semi-autonomous features, having comprehensive and collision coverage is more important than ever. The cost of repairing an autonomous system after an accident could be astronomical without the right insurance.
What Risks Do Self-Driving Cars Pose?
While the promise of fewer accidents is one of the major selling points of self-driving technology, it doesn’t mean they’re risk-free. Autonomous systems are still being tested in real-world conditions, and accidents have already occurred. In fact, a well-known crash in 2018 involving a Tesla Model X in “Autopilot” mode raised serious concerns about the technology’s limitations. The driver was killed when the car failed to detect a concrete barrier.
Even though companies are working hard to perfect self-driving cars, malfunctions, hacking, and unexpected behavior from other drivers could still lead to accidents. The same risks that exist for human drivers—bad weather, road debris, or technical issues—can affect self-driving cars, too. And this brings us back to the critical issue: who pays when something goes wrong?
Preparing for the Future
As we move closer to a fully autonomous future, insurance is evolving with it. While you may not need a special policy for your self-driving car yet, it’s always a good idea to stay informed about your coverage options. Here are a few things to keep in mind if you’re considering a semi- or fully-autonomous vehicle:
- Check with Your Insurer: If you’re buying a car with semi-autonomous features, ask your insurance agent about how it may affect your premiums.
- Keep Your Liability Coverage: Even if your car does most of the driving, you’ll still need liability coverage—especially as the technology transitions. Remember, you’re still the driver in the eyes of the law.
- Consider a Policy with Advanced Tech Coverage: Some insurers are starting to offer coverage for system malfunctions or even cybersecurity breaches that could lead to accidents. It’s worth exploring these options as the technology becomes more commonplace.
Final Thoughts
Self-driving cars are exciting, but they’re also changing the landscape of auto insurance. While it’s clear that fully autonomous vehicles will reduce accidents and make roads safer in the long term, we’re not there yet. In the meantime, drivers still need traditional auto insurance, and it’s important to stay informed about how your policy might change as technology advances. At ECI Insurance, we’re here to help you navigate this evolving world of auto insurance. If you have questions about insuring your self-driving car or need help finding the right coverage, give us a call or text at 405-373-2977.