Insuring Personally Owned Autonomous Vehicles
As the market for personally-owned autonomous vehicles begins to emerge, companies are beginning to work on the insurance models for the vehicles. Sergey Litvinenko, Co-Founder & CEO of Koop Insurance joined The Road to Autonomy Founder Grayson Brulte on Autonomy Insights to discuss the future of insurance for personally-owned autonomous vehicles.
Prior to personally-owned autonomous vehicles being introduced to the market, insurance companies will need to transition from evaluating human risks to assessing software risks. This will involve analyzing technical performance data rather than traditional driving records.
There are four potential modes of operation for personally-owned autonomous vehicles:
- Manual driving
- Autonomous with the Driver present (vehicle has a steering wheel and pedals)
- Fully Autonomous (vehicle has no steering wheel or pedals)
- Network operation (Tesla’s planned network)
Each mode will have different liability implications. When the car is in autonomous mode, the manufacturer will likely be responsible for accidents. When it’s being manually driven, the driver would be responsible. When the vehicle is in-between modes, the liability has yet to be determined.
Then in the event of a crash, there is the claims process. The claims process for personally-owned autonomous vehicles will be complex, potentially requiring specialized body shops capable of repairing sophisticated sensors and systems. This complexity might lead to manufacturers themselves providing insurance and handling repairs.
For personally-owned autonomous vehicles to scale, manufacturers will have to integrate insurance into their offerings, as traditional insurance companies may struggle to adapt quickly enough.
Looking to the future, Sergey automobile manufacturers will become increasingly important players in the insurance space. They’ll transition from simply building cars to providing software, experiences, and services — including insurance.
Chapters
- 0:00 Insuring Personally Owned Autonomous Vehicles
- 4:30 What Happens in a Crash? Who is Responsible?
- 8:05 OEMs as Insurance Companies
- 10:44 Reinsuring the Risk
- 12:45 Future of Personally Owned Autonomous Vehicle Insurance
