Can I get car insurance for a self-driving car?

Car insurance is one of the biggest ongoing costs of owning or leasing a car. And while self-driving electric and hybrid vehicles are relatively new to the automobile industry, decades-old state and federal regulations still require you to obtain car insurance when you buy a driverless vehicle.

Because self-driving cars are an emerging technology, there are many questions from insurance companies and drivers alike as they figure out how to get car insurance for self-driving cars and navigate complex laws about liability, coverage, and more.

Factors that affect car insurance rates once you delve into the details, you’ll see how the industry’s growing integration with autonomous, driverless technology affects everything from insurance premiums to insurance payouts.

What car insurance policies do self-driving vehicles need?

In most states, auto insurance is legally required to drive any vehicle — autonomous cars, SUVs, and trucks included. Mandatory car insurance requirements usually involve:

• Bodily injury liability insurance: Covers the medical expenses of third parties involved in a car accident
• Property damage liability insurance: Applies to any bills you incur if your self-driving car needs repairs or replacement.
• State-specific insurance: Personal injury protection (PIP), uninsured/underinsured motorist insurance (UM/UIM), and MedPay in some states

Various insurers, including personal injury protection (PIP) car insurance companies and bodily injury liability (BI) car insurance companies, will likely treat self-driving cars differently from more traditional cars. This may affect your insurance premiums and other factors.

How do self-driving features affect the cost of car insurance?

It’s still too early to accurately predict how electric and hybrid vehicles with self-driving technology will change car insurance over the long term.

However, based on the self-driving cars on the road today, industry insiders have already pinpointed key ways these newer vehicles could affect everything from car insurance regulations to the cost of obtaining car insurance for a self-driving car.

Insurance Regulations and Shifting Liability

Every state has different rules about insurance payouts after a car accident. In no-fault states, the insurer pays no matter who is liable for the accident. In at-fault states, the party (and their insurer) that’s responsible for the accident must pay for any resulting costs.

As more self-driving cars hit the road, insurance experts predict that the liability issue will shift from the individual driver to the car manufacturer, especially if accidents arise from technological errors or product defects instead of a driver’s actual driving performance.

Determining Driver Risk and Insurance Costs

Self-driving cars will most likely change how a car insurance company calculates your rates. For example, some of the top factors that affect car insurance rates include the following:

• Age: Young drivers and senior citizens are often considered riskier and are charged a higher insurance rate.
• Driving record: Auto insurance companies charge more if drivers have a history of past accidents and claims.
• Driving experience: The longer you’ve had a driver’s license, the more likely the insurer will provide you with a lower insurance quote.

As self-driving technology improves and is adopted by more and more people, autonomous driving technology eliminates some of the above risk factors. This may result in more universal, cheaper pricing for car insurance.

Is car insurance for self-driving cars more expensive than traditional vehicles?

While some experts predict that car insurance premiums will fall across the board as more and more vehicles include self-driving technology, it’s still too early to see those effects on a broad scale.

Getting car insurance for a self-driving car may save you money because the self-driving features, including lane assist and blind spot assist, may make your vehicle eligible for safety feature discounts that lower your car insurance rates.

At the same time, self-driving vehicles and their advanced technology are also currently more expensive to repair. This may increase your premiums for property damage insurance.

As the technology becomes cheaper and more widespread, and as insurers get more data on the effects of self-driving cars on overall accident risks, we will get a clearer picture of the long-term pros and cons related to self-driving car insurance.

Case Studies: Car Insurance for Self-Driving Cars

Case Study 1: Comprehensive Coverage for Self-Driving Vehicle

Sarah recently purchased a self-driving car and was unsure about how to get car insurance for it. She contacted various insurance companies and found one that offered specialized insurance for autonomous vehicles. The policy provided comprehensive coverage for the self-driving technology, including coverage for any technological errors or malfunctions.

Case Study 2: Discounted Rates for Self-Driving Features

Mark owns a hybrid car equipped with advanced self-driving features such as lane assist and blind spot assist. He was pleasantly surprised to learn that his car insurance company offered discounted rates for vehicles with these safety features. By having his self-driving features properly documented and verified, Mark was able to enjoy lower insurance premiums.

Case Study 3: Liability Coverage for Autonomous Ride-Sharing

Emily decided to participate in an autonomous ride-sharing program and wanted to make sure she had the right insurance coverage. She contacted her insurance provider and discussed her plans. The company offered a specialized liability insurance policy tailored to autonomous ride-sharing activities.

This policy provided the necessary coverage in case of any accidents or injuries that occurred while transporting passengers in her self-driving vehicle.

The Future of Self-Driving Car Insurance

Knowing how self-driving technology affects your future car insurance costs can be a key factor when choosing the make and model of your next car.

Self-driving car insurance may simultaneously lower and raise the costs of some parts of your insurance, all depending on your state-specific regulations. Only time will tell how this new class of vehicles will change America’s insurance industry.