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What Effect Will Driverless Cars Have On Auto Insurance?

What Effect Will Driverless Cars Have On Auto Insurance?

If you’ve been in an accident before, you’re probably aware that insurance companies are rarely on your side when it comes to providing you the compensation you deserve. Like any business, insurance companies have their main focus set on protecting profit. Meaning that they often deny claims or pay out much less compensation than the victim deserves. While this is something that insurance companies will surely never change on their own, driverless cars may be able to hit insurance companies where it hurts.

That’s right, yet another possible benefit associated with the inevitable future involving autonomous vehicles. Let’s take a look into some of the ways driverless cars may impact auto insurance.


The automobile insurance required is something that varies from state to state. Each jurisdiction has its own rules in place for both auto insurance and self-driving cars. This imposes the question, “How will insurance be handled when driverless cars are released?” While there is no answer yet to how insurance will work with driverless cars, many experts expect to see a drastic decrease in the cost of auto insurance.


This is where you can expect to see the biggest change in the way insurance companies deal with auto accident claims. As it stands now, there are two types of liability systems in place:

  • No-fault system - The insurance company will pay for damages regardless of who is at fault.
  • Tort system - The at-fault party will be required to pay for the damages involved with the accident.

Both of these systems place a driver at-fault for the accident. However, with autonomous vehicles, liability may fall into the manufacturer’s hands.

Number of Automobile Owners

With the invention of things like Uber and Lyft, fewer people are becoming vehicle owners. This has stirred up a conversation about whether or not people will even own cars once driverless cars are the norm. These new cars may belong to a company, such as Tesla, instead of an individual private owner, which will absolutely impact the way that auto accidents are handled.

At Sachs Law Firm, our team of Orange County personal injury attorneys has been helping those who have been wrongly injured in accidents for countless years. We understand how it feels to have your injuries feel meaningless to insurance companies, and we will do everything in our power to ensure the maximum compensation for your case is pursued.

Call us today at (949) 575-8744 for more information about how we can help you recover.


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