ASA Insurance Offers Latest Information on How Driverless Cars Will Impact Auto Insurance Industry
07/21/2016

Volvo is the latest car manufacturer to announce more testing of driverless cars, adding London to the cities to receive the Volvo models.

Online PR News – 21-July-2016 – Salt Lake City, Utah – Volvo is the latest car manufacturer to announce more testing of driverless cars, adding London to the cities to receive the Volvo models. Google, which was one of the first companies to develop a prototype and begin testing on roadways in the United States, is hopeful of seeing a release date in 2020. How this will impact drivers and companies that insure those vehicles is still being analyzed.

The date of 2020 is considered to be aggressive, but it is expected to be very limited for production. Driverless cars will be limited as to where they will be allowed with use on all major roads coming in another ten years. While the technology has been worked out for driving without human assistance, unpredictable situations continue to delay the release. Jaywalkers, unpredictable drivers and other unplanned situations cause problems in driverless cars. Another concern is teaching people how to interact with this technology.

A concern for many is who will be at fault with a driverless car. Insurance companies and attorneys must address the underlying complications that come from the situation. In anticipation for the future release of these cars, Ford and Uber, along with Google have formed the Self-Driving Coalition for Safer Streets and are pushing for rules and regulations to be created and implemented which will allow these driverless cars to be allowed onto the roadways. Some states are already drafting regulations which would govern a single state. The coalition advocates for federal regulations which would provide a better result and enable these cars to get to market sooner.

A secondary concern has been that car insurance companies in Salt Lake City and other places will no longer be necessary because of the relative safety of these new vehicles. However, even when they are brought to production, they will be the minority with far more traditional vehicles on the road. It will also be some time before the true risks of driverless cars will be known because of the limited testing. Pricing is expected to limit who will be able to buy these cars, just like it did with electric and hybrid cars for several years. Even as the future models become more affordable, the need for insurance may change but will not be eliminated. As with all new technology, it impacts how people handle certain situations, but it doesn’t eliminate the need for such services.

Creed Anderson of ASA Insurance, a provider of car insurance in Salt Lake City, says, “We look forward to change rather than dreading it. We see it as an opportunity to serve our customers in new and meaningful ways.”

ASA Insurance provides car, home and business insurance to people in Salt Lake City and throughout Utah, allowing them to compare rates and find the most affordable policy. The company has been in business since 1950, transitioning products as times and technology have changed. The provider is now one of the largest agencies within Utah.

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