Self-Driving Cars and Insurance

One thing I find interesting about risk management and insurance is that there are new risks popping up all the time. 3D printing, nanotechnology, cyber risks, legalized marijuana, pandemics, etc. to name a few. If you want to do the same thing for the next 30 years, don't go into risk management!

According to the Insurance Institute for Highway Safety, it is anticipated that there will be 3.5 million self-driving vehicles on U.S. roads by 2025, and 4.5 million by 2030. However, the institute cautioned that these vehicles would not be fully autonomous, but would operate autonomously under certain conditions.

Safety is an obvious key benefit of self-driving cars. With lasers and radar for eyes, the computer can monitor the surrounding environment and react much quicker than a human ever could. Not to mention a computer doesnt fall victim to fatigue, texting, or get caught up chatting with passengers the way human drivers can. Self-driving cars could reduce accidents and congestion by driving smarter and safer.

If vehicles do end up safer, some companies are predicting it could reduce auto premiums- but there are several other factors to consider first. Auto insurance companies will have to re-evaluate how to write auto insurance policies and how to discover how to find fault in an accident. Regulations will have to evolve to account for electronics, rather than management.

Let's jump ahead 10 years or so. After performing your due diligence, you purchase a self-operating car designed and built by a leading automobile manufacturer. Due to a major technical glitch in the robot's operating system, a horrific accident ensues. Who is the culpable party? Could you face some liability in not properly performing your due diligence or failing to perform the requisite maintenance on the vehicle? Conversely, some experts would argue that in a fully autonomous auto, the robot itself is liable. Could a robot with full autonomy be held civilly liable for its actions? Or the firm that manufactures it? So, what do you think? Who should bear the legal liability of negligence in auto accidents pertaining to semi-autonomous or autonomous autos? How would our laws have to be altered? What are some other factors that might play into assigning this responsibility?