Insurance will just be bundled with the self-driving car software. Insurance and car are separate today because driver and car are separate today. Once they're the same, there's lots of money to be saved by bundling the sale.
In 2015, Volvo issued a press release claiming that Volvo would accept full liability whenever its cars are in autonomous mode.
[…]
Starting in September 2023 in the United States, Mercedes-Benz takes liability for the Level 3 Drive Pilot as long as the "user operates Drive Pilot as designed," but "the driver must be ready to take control of the vehicle at all times when prompted to intervene by the vehicle."
The actual money will be made because the driverless car manufacturer is self-insuring and cutting out the insurance company. Competition among manufacturers will then pass most of those savings on to you.
Similarly, many car makers offer heated seats without a subscription fee, because of the magic of competition.
Insurance will just be bundled with the self-driving car software. Insurance and car are separate today because driver and car are separate today. Once they're the same, there's lots of money to be saved by bundling the sale.
That already is happening. https://en.wikipedia.org/wiki/Self-driving_car_liability:
In 2015, Volvo issued a press release claiming that Volvo would accept full liability whenever its cars are in autonomous mode.
[…]
Starting in September 2023 in the United States, Mercedes-Benz takes liability for the Level 3 Drive Pilot as long as the "user operates Drive Pilot as designed," but "the driver must be ready to take control of the vehicle at all times when prompted to intervene by the vehicle."
> when prompted to intervene by the vehicle
There'll be a decade of court cases over how fast this means.
Mercedes will argue 10ms before the crash counts; ambulance chasers will claim it's five minutes.
> Once they're the same, there's lots of money to be saved by bundling the sale.
There’s a lot of money to be made. Just look at the prices for travel insurance direct from the airline versus a third party. 2-3x.
It’ll be like BMW with the heated seat subscription fee.
The actual money will be made because the driverless car manufacturer is self-insuring and cutting out the insurance company. Competition among manufacturers will then pass most of those savings on to you.
Similarly, many car makers offer heated seats without a subscription fee, because of the magic of competition.
> Insurance and car are separate today because driver and car are separate today.
This is an excellent point.