Driverless Cars To Slash Insurance Costs By 2020
The cost of the average car insurance policy is expected to be slashed by up to 50% by 2020 as driverless cars become more and more common. These futuristic vehicles aim to eliminate bad driving which is the cost of 90 percent of all road traffic accidents which would, in turn, cut annual premiums by £265.
Industry experts have come forward to say that they believe that road accidents caused by bad driving/human error will be almost eradicated within the next 5 years. This is because the new technology is developing rapidly and a large number of new cars will drive on the motorway and park automatically as well as communicate with other similarly-equipped vehicles to avoid any crashes.
KPMG's head of auto consultancy John Leech said: "Insurance premiums could halve once vehicles which communicate with each other and an 'autopilot mode' when driving on the motorway are developed - this is likely to happen by approximately 2020."
Figures released by the AA show that car insurance premiums have fallen by about 5.8 percent in the last year. You're currently looking at around £530 for a year of fully comprehensive cover. Costs have been kept high over the year thanks to 'avoidable accidents' which are caused by bad driving and a lack of concentration. These types of accidents account for the overwhelming majority of insurance payouts. Car parking disputes and whiplash claims cost more than £3 billion a year which is 94% of all insurance claims.
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James Savery, 28 May 2015