Our generation is witnessing the most significant technological advances in the world. Technology has developed leaps and bounds and revolutionized how people think and work. Autonomous cars are the newest technology that has entered the automotive industry. They’re a fact, but one question that comes to mind is whether insurance policies will function for these vehicles. The majority of Auto Insurance Plan policies are created with the assumption the fact that drivers drive them. However, as this isn’t the case for these vehicles, the consequences of car insurance must be recognized and may be considered by insurers.
Let’s discuss how auto insurance with self-drive works well and what we need to be aware of.
What are Self-Driving Cars?
Before we discuss CAR Insurance for autonomous vehicles, Let’s learn the fundamentals and what precisely these vehicles certain big corporations have begun making these vehicles shortly, and these could be standard.
The levels of these cars range between 0 and 5.
- Cars in level 0 are entirely manual. There is no automation level.
- Level 3 vehicles are automotive, i.e., self-driving under certain conditions. However, at the moment, the alertness of the driver is optional.
- Level 4 vehicles can be operated autonomously in traffic in cities and highways. The driver can take control at any moment, and in the event of danger, the car can stop or allows a command to the driver.
Fully automated cars are at level 5, and there aren’t any seats for the driver, just seats for passengers. So there is no need to obtain a driver’s license for those who own cars of this type.
Auto Insurance for Self-Driving Cars
Do self-driving vehicles require insurance since there isn’t any human error? At present automated cars at level 5 aren’t available in India. Therefore, the answer depends on assumptions. Fully self-driven vehicles won’t require regular insurance, but they will require driverless car insurance.
There is a chance of accidents occurring in partly automated vehicles, and technological mistakes could happen to any car. Because of this, autonomous vehicle insurance is the type of insurance this type of vehicle will require.
The price for Self-Driving Cars:
How do we talk about insurance without having to talk about costs? Auto Insurance Plan still need to issue formal announcements since fully automated vehicles are available in India. However, one thing that needs to keep in mind is that when an automobile insurance policy is an issue to a person, the driving history that the individual driver has is consider to determine the cost; however, since these autonomous cars don’t have drivers, the features, such as safety features and the vehicle’s tech, maybe the most critical factors in determining the amount of premium.
Specific factors that can be taken into consideration when calculating the price of autonomous car insurance include:
- Insurance policy type
- Model or make or variant on the vehicle
- Add-ons chosen
- The value declared as insured
- Geographical area
In addition to the above, a few crucial points must consider when formulating the premiums. First, it is essential to remember that the Insured DECLARED value for these vehicles will be substantial, which means that it will not be the only aspect in calculating premiums.
1. Level of Automation:
This is because there are various levels of automation. This implies that the degree of human involvement will differ.
2. Number of Claims:
The chance of human error is meagre because of automation. Therefore the event of accidents is predicted to decrease.
3. Human Errors:
Thanks to the technology that drives these cars, the human error should be less frequent, lowering the risk and cost.
4. Liability of Driver:
A human error like drinking and driving or ignoring traffic laws will be less, which will improve security. In addition, this will decrease the risk of accidents since the only fault that could occur is a technological error.
5. Repair Costs:
The technology at this level will be costly. This will indicate that the repair cost will be substantial in the event of failure. This could have an impact on the price of the product.
Need for Insurance for Self-Driving Cars:
Autonomous cars or self-driving vehicles are highly secure in security because of the technology employed. However, there are other reasons why no insurance will require for these vehicles. These vehicles will be in a distinct category, but let’s discuss some reasons demonstrating the need for insurance.
1. Technical Faults:
Human error or lousy judgement by humans could not be present in these vehicles since there isn’t any role for an individual driver. This suggests that there could be other issues that are related to technology. For example, there are times when machines break down, which is why insurance is essential for cars with this type of technology.
2. Different Automation Levels:
Cars’ levels of automation have various levels. Apart from Level 5, which has been fully automated, all other classes require human intervention and are susceptible to human error. Therefore, insurance is mandatory for these vehicles.
3. Legal Compliance:
According to the Motor Vehicles Act of 1988, vehicle driving on Indian roads must have Third-Party Auto Insurance. This is for the protection of losses that happen to an uninvolved third party. However, they cannot guarantee total security, so policymakers can make insurance for these vehicles mandatory under the law.
4. Cover for Damage:
Loss, damage and theft do not have anything to do with human interference, and the risk is present even for autonomous vehicles. In addition, natural catastrophes or even unnatural disasters can affect any car, so comprehensive car insurance is also necessary for these cars.
Conclusion
Autonomous vehicles are a new concept as well. They may be the most significant technological advancement in the automobile sector. They will revolutionize how we drive; however, the main issue is what impact it will have on car insurance. Comprehensive insurance, also known as third-party insurance, will change with the new vehicles.
