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Driverless Cars and Insurance Premiums

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According to an article on TheActuary.com, if driverless cars are adopted at a fairly moderate pace, insurance premiums could see a drop by 20% by 2035, and even 40% if fully adopted by 2050.

While there is an expectation for claim frequency to fall by 81%, there is an expectancy for the severity to rise due to the high cost and complexity of the make of the vehicles.

Aon Benfield states that, “The adoption of commercial cars took 80 years to reach 90% adoption,” which could mean it might be a while before we see those substantial drops in premiums.

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