Driverless cars to cut car insurance prices by over 60%

A new report expects car insurance premiums to fall by two thirds as more and more cars feature autonomous tech

The cost of car insurance is expected to plunge by nearly two-thirds when motorists make the switch to fully driverless cars in the future, new research has found. 

According to a report by research company Autonomous Research, autonomous cars will slash UK insurance premiums by 63 per cent by 2060, causing the motor insurance industry to shrink by over 80 per cent.

Today, motor insurance policies make up for 42 per cent of the global insurance market, as human error remains the biggest cause of accidents. One-third of all claims are generated from rear-end shunts, with two-thirds occurring at speeds below 30mph. Parking and reversing scrapes cause nearly a quarter of all claims. The cost of the average motor insurance policy in the UK last year was £357. 

• Cheapest cars to insure 2016

According to the report, with fully autonomous cars on the road, the percentage of motorists making a claim will plummet from 9% to around 2.4% by 2060. And this fall in numbers is already on the way. Cars with semi-autonomous features like adaptive cruise control and autonomous emergency braking (AEB) have been found to cut accident rates for motorists. 

The report estimates that basic advanced driver assist functions like AEB cut accident rates down by 14 per cent, with more advanced systems in the future slashing the potential for accidents by 36 per cent.

Car crash, insurance, write-off, accident

Autonomous Research identifies the year 2025 as a “pivotal point”, after which fully driverless cars will really start to impinge premium prices. By 2064, Autonomous Research estimates fully driveless cars will be available worldwide.

• New tech to wipe off £14billion off car insurance premiums

It said: “While Google & Tesla focus on fully autonomous solutions, established car makers have opted for a gradualist approach, progressively introducing advanced driver assistance systems (ADAS) first to the luxury end of the market, then more widely

“Research suggests that these technologies prevent crashes. Depending on price, there is public appetite for them. Historically it takes 15 years for new technology to penetrate 95% of new car sales, a further 15 years to fully penetrate the fleet. However it could be quicker this time around given the sea change in customer experience."

Would you buy an autonomous car in the future? Tell us in the comments below....

Recommended

Killer drivers will face life sentences from 2021
Speed camera accident
Consumer news

Killer drivers will face life sentences from 2021

Government promises to introduce legislation to reform sentencing for drivers who cause death or serious injury next year
14 Sep 2020
Over half of drivers break 30mph limits
Increased speed limits helps to cut accidents
Consumer news

Over half of drivers break 30mph limits

Official figures show drivers are most likely to break 30mph limits, closely followed by 70mph motorway limits
9 Sep 2020
Driving licence validity extended for 11 months
News

Driving licence validity extended for 11 months

Move follows seven-month extension announced in June; photocard licences expiring between 1 February and 31 December 2020 get automatic 11-month exten…
1 Sep 2020
Private parking firms face Government crackdown
UK’s parking ticket lottery
Consumer news

Private parking firms face Government crackdown

New proposals will introduce a cap on fines, a 10-minute grace period, major and minor offences, plus increased maximum fines
1 Sep 2020

Most Popular

Energy firms want the right to switch off electric cars charging at home
Electric cars

Energy firms want the right to switch off electric cars charging at home

New powers being sought to allow energy providers to turn off high-drain devices to manage electricity network
18 Sep 2020
Audi A3 vs Mercedes A-Class
Car group tests

Audi A3 vs Mercedes A-Class

The Audi A3 and Mercedes A-Class are strong competitors in the premium hatchback market - we find out which is best
19 Sep 2020
New Rolls-Royce Ghost 2020 review
Rolls-Royce Ghost

New Rolls-Royce Ghost 2020 review

The all-new luxury Rolls-Royce Ghost saloon brings new levels of refinement
18 Sep 2020