Google’s Driverless Cars and the Future of Insurance

Self Driving Cars Graphic

You’ve probably heard about Google’s self-driving cars being tested on California roads. These driverless cars have been in the testing phase for a few years now. If you live in California you may have seen one on the road!

Over 30,000 individuals die in the US every year as a result of automobile accidents and many people believe that driverless cars are going to drastically minimize, even eradicate, the number of deaths that occur as a result of automobile accidents.

Having driverless cars on the road could change the way driving works all together. The repercussions of these driverless cars could be far reaching. But, what about insurance?

If you don’t drive your car, will you need an insurance policy? At first thought it may not seem that there would be a need for car insurance but many experts have argued that although car insurance may change drastically, it will probably still be a necessity.


Let’s say a tree branch breaks off in a storm and falls on your car. In a situation like this, you will want to make sure that you have insurance coverage to cover the cost of replacing/repairing your car. Some people believe that your car would become a part of your home insurance policy and be considered part of the contents of your household. Regardless, drivers will want to make sure that their car has coverage that will take care of damage that is a result of an ‘act of God’.


Maybe there will never be an accident again once driverless cars are on the road, but what if there was an accident? Would you be responsible for the damage that your car caused or would the car manufacturer be responsible for the damage that your car caused?

At the end of the day, someone will have to be held responsible. This may mean that car insurance becomes something that manufacturers’ carry rather than drivers. Should that happen, the face of auto insurance will change drastically but auto insurance will still exist.

For now, we will speculate while continuing to prepare for driverless cars. Google continues to make progress with the cars and we are excited to see how the cars revolutionize driving in the US.

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