Business: Tesla’s Self-Driving Car Will Impact Insurers

Tesla has announced that it will be rolling out a new self-driving feature on cars this summer. The announcement has lawmakers in Tesla’s home state of California scrambling; in California, insurance is dictated by the state so the decision as to how self-driving cars will influence the future of insurance needs to come from the top down. “This is so new, there’s really no track record upon which to assess what’s the likelihood that there will be a crash or lawsuit resulting from a crash,” Michael Barry, Vice President of Media Relations at the Insurance Information Institute, an industry-funded nonprofit, on Saturday. “It’s in its infancy.”  However, Barry believes driverless cars will eventually lead to fewer accidents on the road and that it may take a number of years for driverless cars to become a regular feature, “the average car on the road is about 11 years old, so it takes decades for the U.S. fleet to turn over,” Barry said. “I think we’re far away from seeing a lot of driverless cars on the roadways.”

Contributor: Phoebe Roe


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