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To quote Warren Buffett: "If you've got a cop following you for 500 miles, you're going to get a ticket". When you have someone or something following you every
by 29083011397778 5y ago
To quote Warren Buffett: "If you've got a cop following you for 500 miles, you're going to get a ticket". When you have someone or something following you every second of every minute, with a perfect memory and no other context, your insurance is going up. And I'm sure some will say Tesla's AI can get context through other drivers actions; that's not quite right though - Tesla only knows what the other vehicles are doing, not the drivers.
- throwaway09223 5y agoSure, but this isn't a cop. Insurance is a civil contract driven by market choice. This system isn't authoritarian - it's optinal and the customer has buying power. Because of this, these systems typically are used exclusively to offer discounts against the baseline insurance premium and they can only lower the premium relative to the assumed default risk. It's all carrot, no stick. https://www.nationwide.com/personal/insurance/auto/discounts/smartride/ https://www.nationwide.com/personal/insurance/auto/discounts... "Can SmartRide increase my premium? No. This is a discount program." https://www.usaa.com/insurance/safedriving https://www.usaa.com/insurance/safedriving "Will my driving information impact my insurance rates? No. We will only use your driving information to calculate your discount." Insurance companies are willing to offer these steep -- 40% -- discounts because bad driving is so extremely expensive and damaging. The added signal of driver behavior patterns can allow the insurance company to lower their rates by almost half. Almost half! As an aside, these are the types of insurance premium reductions we should expect, or better, when self driving cars first become a reality.