It won’t be long before self-driving cars become commonplace on Canadian roads. By the early 2020s, a number of carmakers expect to have self-driving models available for purchase. As for Canadians themselves, 37% of driving-age residents are already interested in using self-driving cars, according to a recent Insurance Bureau of Canada (IBC) poll.
This is a positive development. Experts believe that the self-driving cars will significantly lower the number of accidents on our roads and reduce traffic congestion and vehicle emissions. (It’s worth noting that 90% of collisions are caused by human error.)
Fewer accidents also means fewer accident and injury claims. However, insurance claims may also become more complicated with the rollout of self-driving cars. Moreover, there will be important changes in car insurance policies. Here’s a rough overview of the impact that self-driving cars will have on Alberta’s auto insurance industry.
Premiums may rise due to higher repair costs.
The technology used in automated cars is expensive. While there will be fewer collisions, collisions will be a more costly affair. This could lead to higher insurance premiums.
New risks will need to be factored in to insurance policies.
Collisions may result from technological issues such as network failure and cybercrime. These risks will be reflected in one’s insurance coverage.
Liability will shift from the driver to car manufacturers.
Since human error isn’t a factor in collisions caused by self-driving cars, car manufacturers and technology providers will be at fault in such circumstances. This may be taken into account in car insurance policies. For example, some insurers may choose to offer full no-fault insurance.
Claims may take longer to process.
The fallout of liability shifting to car manufacturers is that claims may take longer to process. This is because product liability litigation is more complex and lengthier than the standard collision claim. It’s probable that new laws around product liability will be introduced to address this problem. However, don’t expect this to happen in the short term.
Comprehensive Car Insurance In Edmonton
No matter what the landscape of car insurance looks like once self-driving cars are here, you can count on the team at MBS Insurance Brokers Ltd. to help you obtain customized auto insurance in Edmonton at the best price. To learn more about our services, or for a free insurance quote, contact us today.