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Impact of driver less and electric vehicle on insurance industry
Autonomous driving has much potential to change the way we live as much the car itself does. The innovation of high technology driverless car has much implication to our daily lives as well as to the insurance industry. To begin with, the automatic cars have been a thing of admiration to the insurance company because, positively, it has contributed hugely to the elimination of accidents. This has been effective since the cars are made up of a high-quality camera, advanced software as well as active sensors that react to the surrounding environment thus eliminating any associated human error which is a significant driving risk. The fact that some vehicles have been installed with automatic braking technology has saved many lives since front –to –rear vehicle crashes has been reduced to almost 50% ( Ryan, 2017).however, the insurance industry has been in dilemma facing the quite a number of challenges concerning the insurers, insured and the manufacture of the vehicles.
The most challenging issue is how the insurance industry will make adjustments to fit the insurance premiums of the automatic vehicles. Evidence indicates that the automatic driving Is going to reduce the number of collisions thus reducing the number of premiums paid to the insurance companies (Davidson & Spinoulas, 2016).This is a direct hit to the industry because the industry will be forced to shrink up to more than 40% in the next 25 years or even more. The insurer is ready to face this ripples because they perceive the automatic driving as a threat to their business. Another issue that is giving the industry a night mere is the question of liability. The automatic car needs no driver at whosoever the case. As far as the reduction of the accidents has been addressed by this technology, instances may arise when rare accidents occur. The liable person in this manner is still in question because at times manufacturers and automakers are forced to take liability, a fact that is considered unfair by many. The liability taken by automakers has been proved to e expensive more than before since the drivers are not involved.
Additionally, the insurers are on the move to adapt to the new actuarial pricing difficulties although they have not been to the public to address the solution they have despite the fact that the government has been a frontier in suggesting the new rules and regulations (Shuai et al., 2016).The problems accompanying the fixation of high-quality software may need expertise not forgetting that the high using technology in automatic vehicle may contribute to confusion, mainly when the accident is caused by human command software that controls overriding
Ownership of the automatic cars is still a question of debate in the insurance industry. There is no clear line whether the cars were put on sale in a traditional way or the manufacturers possess them before leasing them to the buyers. To clear this doubts, the insurers need to embrace the facts the autonomous vehicles are a tangible and futuristic deal. Therefore, they should adequately prepare for the impending change in readiness for the qualitative product creation for the driver fewer cars.
Impact of Driverless Car on Automotive Accident Litigation?
Although the driver fewer vehicles have been hitting the headlines on their significant move on reducing the number of car collisions and accidents in general, many questions are still in the books concerning the future accident litigation .appreciatively, automatic driving has been applauded since it has helped in dealing with the careless, drunk and distracted drivers, of their driver seats, thus eliminating the rate of accidents in the united states. Arguments have been made that even if the vehicles are being driven by the computers, accidents and liability claims will never be solved unless litigation saves the claiming parties (Davidson& Spinoulas,2015. Complaints about the driver’s negligence might be a forgotten issues, but still, the collision might occur as a result of poor motor design, manufacturing or even software installation. When software installation fails, the hardware gets into a glitch causing an automatic accident to occur. If such incidence happens, the auto lawsuit will focus its judgment on product liability and not the driver’s negligence.
In automated giving, the product liability comprises of efforts that are taken in giving legal remedies to the injured or fatalities .a defective vehicle causing an automatic accident will be charged on three liability theories; strict, negligence and breach liability( Browning, 2014). In the strict liability, the manufacturer is held liable for the accident since the vehicle was designed his/her industry. In case the vehicle is involved in an automated accident, the manufacturer is charged with the poor design and fails to warn the users even if negligence might not be the cause. Under a negligence theory, the manufacturer is accountable for qualitative products designing and manufacturing to avoid any associated accidents under different circumstances. For instance, the manufacturer should design and test the capacity of the care to automatically use the braking system in both dry and wet areas. If testes in one condition, said in dry regions, an accident is likely to occur in a wet or muddy environment. The law suite n this case will charge the manufacture of negligence issues. Lastly. The breach legality holds the manufacturers accountable for not providing sufficient information about the risks likely to occur when using the automated vehicles.
- Browning, J. G. (2014). Conning the IADC Newsletters-Emerging Technology and Its Impact on Automotive Litigation. Counsel J., 81, 83.
- Davidson, P., & Spinoulas, A. (2015, June). Autonomous vehicles: what could this mean for the future of transport. In Australian Institute of Traffic Planning and Management (AITPM) National Conference, 2015, Brisbane, Queensland, Australia(p.7).
- Davidson, P., & Spinoulas, A. (2016). Driving alone versus riding together-How shared autonomous vehicles can change the way we drive. Road & Transport Research: A Journal of Australian and New Zealand Research and Practice, 25(3), 51.
- Ryan, C. (2017). Driverless Cars: Preparing for the Impact on the Automobile Insurance
- Shuai, W., Maillé, P., & Pelov, A. (2016). Charging electric vehicles in the smart city: A survey of economy-driven approaches. IEEE Transactions on Intelligent Transportation Systems, 17(8), 2089-2106.