5 min read
Updated on Apr 19, 2023
As the name goes, driverless cars mean vehicles that run automatically without a driver. This is a self-driving car that doesn’t require any navigation supervision and runs on its own with the help of an automated system. This car is expected to enable smooth traveling of people from one destination to another without any dependency on a driver.
A highly anticipated product, driverless car is likely to fulfill the dream of a machine driven future. Along with efficiency, the driverless cars are likely to add convenience to the lives of millions. Due to their automated functionality, the driverless cars are also termed as robotic or autonomous cars.
Let us now discuss the various stages that the auto drive cars are likely to pass through.
The various stages of driverless vehicles can be separated in six different levels starting from zero and going till level five. Here, zero is the level where the conventional cars are being used, while five represents the level in which the completely autonomous cars are used. At present, the level that the driverless cars are standing at is within zero and one.
Below is an explanation of the various stages of driverless cars:
It is expected that self driving cars are soon going to become a reality. This is because, not just the automobile giants but even the technology conglomerates such as Apple and Google are taking interest in this sector and investing hugely in their growth and development.
Further, the industry has ignited a lot of curiosity and interest among the car enthusiasts. At the same time, it has brought into fore a thought provoking question as to what impact these automated cars would have on the motor insurance industry and the premium costs of vehicles.
Technology is fast changing and progressing for the better. This has brought down the rate of deaths related to car collisions. Though the addition of many new safety related features in a car may not have changed the accident scenario much in the country, it has been able to bring a dip in the number of deaths caused by accidents.
With autonomous cars, you get the added safety features such as self parallel parking, lane assistance, GPS navigation and traffic jam assistance among others. There is a hope that these features are likely to cut down on the rate of car insurance premium. These security features are expected to lower the risks of driving a car, and motor insurance is nothing but bearing risks. So, it is expected that these features might bring down the cost of insurance.
As per recent reports, it is likely that the rate of car accidents will go down massively soon in the future by the mid of this century. If that happens, it will have a negative impact on the insurance industry. Further, driverless cars are also likely to bring down the premium price of car insurance with the decrease in claims. However, the liability insurance will continue to persist since most driverless cars would have manually driving options as well. But there would be variations in coverage.
So, overall there might be a setback faced by the insurance companies in terms of business. With advanced features like kill switch, which is an anti-theft feature only the owner of the car would be able to switch the engine on. Further, there would be advanced GPS to enable the cars for easy tracking. Thus, all these are expected to cut down on the insurance premium cost in the future.
Also Read: Differences in Manual vs Automatic Car Insurance Policy
Despite the fact that the autonomous vehicles are likely to come up with several advanced safety features, it is still unclear if it will have any major impact on the auto insurance companies. So, it is yet to see if the new features will bring about any significant changes in the rate of premium.
As such, there have been many features already working in cars that help in avoiding vehicle collisions. These features are good in terms of assisting the drivers while driving the car but it couldn’t impact the insurance sector much. Moreover, it also couldn’t impact the number of accidents taking place globally, though the death rate due to accidents has reduced considerably.
At this time, it’s too early to anticipate how India’s auto drive automobiles would affect the country’s auto insurance market. We can simply expect to experience gradual changes in the long run. Hence, insurers need to wait for the changes to act accordingly.
According to reports, future insurance development will need to focus on three areas: infrastructure insurance, product liability, and cyber security.
Read More: Best Automatic Transmission Cars in India under Rupees 10 Lakhs
To sum up
Due to the introduction of autonomous automobiles in India, significant changes in the automotive and motor insurance industries are predicted. It is likely that the changes would be positive. There might be new liabilities in terms of product for the insurance companies to cover. We just can wait and watch if any significant change or reduction is likely in the insurance policies or premiums.
Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit PayBima to Buy Insurance Online.
View this post on Instagram
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
Fitness is crucial not only for human beings but also for vehicles plying on roads. According to the Motor Vehicles Act, 1989, every vehicle is.
According to The Motor Vehicles Act of 1988, one can’t drive in India without a driving licence. A DL or Driving Licence is issued by.
A guide on the different types of road tax that exist in India and the method of calculating road tax for citizens The Government of.
As humans, we all have a name for an identity, and the same vehicles have a registration number. These four-digit vehicle registration numbers are issued.
A peek into the most sought-after two-wheelers (scooter & scooty) in India 2023 based on their models, showroom price, and overall performance. Here we listed.
While on the road, you are not sure what happens next. One slight mistake might lead to an accident. And when an accident strikes, be.
Bringing home a new vehicle is a matter of great joy and excitement for the whole family. But this joy comes with the trouble of.
Green Tax is a measure taken by the government to make people conscious about the environment and to work for its sustainability in the future..
A number plate of a vehicle is a metal plate that is fixed to the vehicle and contains the registration number of the vehicle. Let.
There are a number of advantages which make a CNG car better than cars that run on other fuel types. And that is the reason.
Speak to our advisor
Corporate Office : Mahindra Insurance Brokers Ltd ( A Mahindra Group Company ) Sadhana House, Ground Floor, 570 P. B. Marg, Behind Mahindra Towers, Worli, Mumbai 400018.
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2023 Mahindra Insurance Brokers. All Right Reserved.