Despite Self-Driving Concerns Auto Insurance Companies Must Adapt Warns Shop Insurance Canada

May 05, 2016   Business News
(PRLEAP.COM) May 5, 2016 Autonomous vehicles are expected to change many industries and even the way in which we live our lives. However, as these vehicles come close to arriving on the market, industry experts are raising doubts about safety and advocating taking a slow approach in introducing self-driving cars. Shop Insurance Canada says auto insurance companies need to start adapting now because autonomous vehicles are coming, whether it is this year or in five years.

The online insurance expert warns that the industry cannot afford to employ a "wait and see" policy and needs to act now to ensure it is in the best position to adapt to market changes.

Self-driving vehicles are currently dividing opinion, with one side thinking the technology is ready to launch to consumers, and the other side urging a slower approach to iron out kinks and form meaningful regulations. The latter opinion is gathering pace as industry experts argue that autonomous vehicles are not yet safe enough for roads.

Paul Scullion, safety manager for the Association of Global Automakers, cautioned against rushing into a self-driving market. Speaking at a public meeting hosted by NHTSA, Scullion said that regulations alone for these vehicles will be a slow process.

"While this process is often time-consuming, these procedural safeguards are in place for valid reasons," Scullion said.

It is widely thought that the first production models will be made available to consumers as soon as next year, while full autonomy could be achieved by 2025. Full autonomy would mean no human interaction, something Google is already pushing for. The tech giant is a leader in self-driving technology and is pushing to launch its first ever product without a steering wheel.

It is unlikely that technological leap of faith will be adopted yet, but regardless, autonomous vehicles are here and they are going to change many things in the insurance sector.

Shop Insurance Canada says that the auto insurance industry will be impacted more than most by the rise of self-driving vehicles, but argues that the changes do not have to be negative. If auto insurance companies adapt now and plan for an autonomous future, they can find ways to succeed in a changed insurance landscape.

While personal liability coverage is likely to lessen in the coming two decades, insurers can move with the times and introduce product liability. This may involve working directly with vehicle manufacturers on broad coverage that covers multiple vehicles under one policy. Providers will still be offering the same product, but it will be tailored commercially and not as a personal coverage.

Auto insurance companies need to prepare their policies now warns Shop Insurance Canada, while providers in Canada also need to ready policies that are geared towards the sharing economy. Aviva Canada is the only company to have created a product that allows ride-sharing drivers to insure their vehicle, but more providers need to follow Aviva's lead.

Autonomous vehicles will almost certainly help the sharing industry thrive, and single car sales will fall in favor of shared pools. Auto insurance companies must be prepared for this shift and start developing their sharing oriented policies now.

For information on autonomous vehicles and the challenges they pose to the insurance industry, contact Shop Insurance Canada online, or call us on 461-913-1051.

About Shop Insurance Canada
Shop Insurance Canada is a Toronto based company that specializes in delivering the best auto insurance products to customers around Ontario and Canada. The online car insurance quoting tool uses an engine that is easy to use and accurate enough to deliver the best auto insurance quotes from over 25 of Canada's leading providers. Shop Insurance Canada also offers expert advice on the auto insurance industry, as well as guides and news to help customers find the best deal possible.

Shop Insurance Canada
1003-60 Bathrust St.
Toronto, Ontario
M5V 2P4 Canada
Phone: 416-913-0151

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