IMPACT OF AUTONOMOUS VEHICLES ON AUTOMOBILE INSURANCE
Open Access
- Author:
- Gong, Elizabeth K
- Area of Honors:
- Risk Management
- Degree:
- Bachelor of Science
- Document Type:
- Thesis
- Thesis Supervisors:
- Ron Gebhardtsbauer, Thesis Supervisor
Lisa Lipowski Posey, Thesis Honors Advisor - Keywords:
- autonomous vehicles
insurance
automobile
self-driving cars - Abstract:
- As technology revolutionizes the way cars are being built and driven, the fully autonomous-vehicle is born, an automobile that can sense traffic and environmental conditions and operate without human assistance. This will transform the automobile industry, and more specifically the automobile insurance industry. With the introduction of self-driving cars on the road, there are potential risk factors that need to be addressed and safety measures that need to be implemented before these vehicles can be sold to consumers and businesses in the market. This paper focuses on the impact of autonomous vehicles on automobile insurance for consumers, insurers, and manufacturers. As autonomous vehicles are introduced, personal cars will transform into a creative space for consumers that offer more options for customization. Ridesharing is also gaining increasing popularity in cities where personal vehicles are the primary mode of transportation. Autonomous ridesharing offers accessibility and convenience for customers and long term economical savings for businesses. The transition to fully autonomous vehicles on the road will take time, so the goal is to develop affordable insurance for consumers and businesses. These policies will aim to estimate losses and claims for insurers, set reasonable premiums, and evaluate potential changes in underwriting in order to assess the ultimate impact on the insurance industry.