How Electric and Autonomous Cars Are Changing Coverage Needs

The emergence of autonomous and electric vehicles is rapidly changing the auto insurance industry. Insurers must evaluate how they create policies and decide on coverage rates.

Autonomous Vehicles

While not used by the mainstream population just yet, autonomous vehicles are being utilized in some cities across the country, especially for ridesharing purposes. But the biggest question in insuring autonomous vehicles is who’s held liable in an accident if the vehicle isn’t being driven by a person.

Insurers must determine if the fault of an accident lies with the vehicle’s maker and its software, the data provider, or the person responsible for the vehicle. It’s important to consult your insurance provider to understand exactly what coverage is needed for autonomous vehicles.

Electric Vehicles

Electric vehicles (EVs), on the other hand, are becoming much more widely used by the broader population. However, certain aspects of EVs present insurance challenges and policy considerations that traditional gas-powered vehicles don’t. Consider the following:

• Maintenance and repair costs—Most EV repairs must be performed at a shop with specific knowledge about them. Specialized parts may also contribute to more expensive repairs, potentially leading to higher premiums.
• Safety incentives—While they may be more expensive to repair and maintain, EVs often include advanced safety feautres reducing collision risk, thus leading to potentially lower premiums.
• Battery-related claims—Even minor collisions or fires can lead to costly repairs if the EV’s battery is affected. Batteries for EVs are generally more complex and expensive to replace or repair than those in gas-powered vehicles.

Contact Us

As technology continues to advance, such changes are also reflected in the auto industry. While autonomous vehicles are still being improved and developed, EVs are already utilized by a growing portion of the population. These changes significantly impact how auto insurers calculate risks and premiums.

Contact La Oficina Insurance Agency in Athens & Columbus, GA today for a personalized quote and to discuss your specific insurance needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.