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Insurance for human drivers stays the same. If anything, it goes down, because the more Waymo-level autonomous vehicles on the road, the safer it is overall. I
by coryfklein 2y ago
Insurance for human drivers stays the same. If anything, it goes down, because the more Waymo-level autonomous vehicles on the road, the safer it is overall.
Insurance isn't a zero sum game, where "less insurance spent on autonomous vehicles" means the insurance companies have to make up for it somewhere else.
In a way, "car driving getting safer overall" isn't great for car insurers, because they make money financing auto risk, and if there is 50% less auto risk then they have less addressable market.
- fragmede 2y agoInsurance is, however, a for profit corporation, out to maximize profits, so they'll charge both groups a premium, and then add a service fee on top of that.
- coryfklein 2y agoNothing about that changes with the introduction of autonomous vehicles though, and it's a very open and highly competitive market. It is extremely easy to switch your auto insurance provider, and anyone who can pay some actuaries can start up a new business. (Though few do, because there isn't a huge margin to take away from the industry as it is.)
- cloverich 2y agoAnd when they post the obscene margins as a result of doing this, other insures can come in and undercut them. That's a key ingredient to making insurance work well. Its also why "insurance" doesn't work for healthcare.
- valval 2y agoInsurance prices aren’t made up, they’re calculated based on probable costs.