No. 7 & 7A,
Jalan Tiara, Tiara Square,
Taman Perindustrian Sime UEP,
47600 Subang Jaya,
Selangor, Malaysia.
+603-8023 9829
+603-8023 7089
Fictron Industrial Supplies Sdn Bhd
No. 7 & 7A,
Jalan Tiara, Tiara Square,
Taman Perindustrian Sime UEP,
47600 Subang Jaya,
Selangor, Malaysia.
No. 7 & 7A,
Jalan Tiara, Tiara Square,
Taman Perindustrian Sime UEP,
47600 Subang Jaya,
Selangor, Malaysia.
Fictron Industrial
Automation Pte Ltd
140 Paya Lebar Road, #03-01,
AZ @ Paya Lebar 409015,
Singapore.
+65 31388976
sg.sales@fictron.com
Automation Pte Ltd
140 Paya Lebar Road, #03-01,
AZ @ Paya Lebar 409015,
Singapore.
+65 31388976
sg.sales@fictron.com
Five Reasons Self-Driving Vehicle Manufactures Will Likely Change The Insurance Market
28 Feb 2019
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Self-driving car manufacturers, or SDCMs, are seeking to build ownership of autonomous vehicles easier and more affordable for consumers, and they are taking a rather innovative path in getting there. Insurance. Can you comprehend a time when your insurance continually goes down instead of up? It is hard to fathom, right? Yet, if SDCMs expand to the car insurance business, this may very well be a reality
Why Are SDCMs Getting Involved With Vehicle Insurance?
1. Barriers
It’s not all altruistic on the manufacturer’s part. Intertwining with insurance aids the manufacturer just as much as the consumer. An adoption wall exists for usage of self-driving vehicles. This is very true once it comes to everyday private drivers and transportation “taxi” vehicles.
Insurance agencies may not give insurances for autonomous vehicles at all or price it at expensive levels. After all, since autonomous vehicles aren’t on the market yet, there’s no statistical data on accidents, injuries, and fatalities for the insurer to even base pricing upon. This means they’ll likely rollout coverage at the highest price point possible to cover themselves, and that’s a big deterrent for any buyer and a big downside for any manufacturer.
The good news is that SDCMs will have their own data centers concerning statistics on accidents, injuries, fatalities, and even near misses in relation to their own line of self-driving vehicles. They’ll be able to collect and analyze this information at any given time and generate more accurate auto insurance quotes for their own automated vehicles. By being both the seller and mandatory protection source of the good, SDCMs will knockdown the insurance barrier of availability and affordability for both their own pursuits and those of the consumer.
2. Build Consumer Confidence
While self-driving vehicles have long made appearances in movies and books, they have yet to be tried out in real life by consumers. Buyers just have no idea what to expect nor if autonomous vehicles are a safe and reliable investment. What better way for a manufacturer to say their confident in their product than to guarantee it themselves?
3. Enhanced Consumer Car-Buying Experience
Few, if any, thrill in the idea of shopping for the best auto insurance quotes. With SDCMs providing insurance at purchase, the consumer can completely skip the middleman insurer and the entire painstaking insurance search and comparison process. Insurance would be available immediately at purchase and help offset the total cost of the vehicle, too.
4. Unified Pricing
The entire insurance procedure will be highly simplified for self-driving vehicles. Most insurance pricing roll around caveats of the driver – driving record, age, gender, and so forth. Adjustments are made for probability of human error, too. With autonomous vehicles, however, insurance will not have those revolving doors of ifs. Pricing will merely be based on the vehicle itself, or rather based on the software and hardware installed.
If the technology is the same in a given self-driving vehicle, then the price of insurance will be the same whether it’s senior with a few accidents on their record, a newbie driver with no experience, or a businessman logging hundreds of miles each day.
5. Drives Insurance Prices And Liabilities Down
Autonomous cars can be commercialized after SDCM’s demonstrate that they are safer than cars driven by humans, which will then enable SDCM data banks to determine exact probabilities for accidents and the resulting costs.
Did you know that IBISWorld reported that auto insurance was a $259 billion dollar industry in 2017? To put into perspective just what a huge marketplace that is, the entire U.S pharmaceutical industry was valued at $446 billion in 2016.
Insurance costs will significantly decline with SDCMs focused on accident prevention and offering insurance prices based on real-time accident and fatality data. This should in unison expand the market and make car ownership more affordable for everyday consumers.
The insurance reduction in cost should not just be a one-and-done situation, either. Consumers should see continued drops in insurance pricing as car manufacturers and software vendors publish updates and releases to the safety of the self-driving vehicles.
This article is oriignally posted on Tronserve.com
Why Are SDCMs Getting Involved With Vehicle Insurance?
1. Barriers
It’s not all altruistic on the manufacturer’s part. Intertwining with insurance aids the manufacturer just as much as the consumer. An adoption wall exists for usage of self-driving vehicles. This is very true once it comes to everyday private drivers and transportation “taxi” vehicles.
Insurance agencies may not give insurances for autonomous vehicles at all or price it at expensive levels. After all, since autonomous vehicles aren’t on the market yet, there’s no statistical data on accidents, injuries, and fatalities for the insurer to even base pricing upon. This means they’ll likely rollout coverage at the highest price point possible to cover themselves, and that’s a big deterrent for any buyer and a big downside for any manufacturer.
The good news is that SDCMs will have their own data centers concerning statistics on accidents, injuries, fatalities, and even near misses in relation to their own line of self-driving vehicles. They’ll be able to collect and analyze this information at any given time and generate more accurate auto insurance quotes for their own automated vehicles. By being both the seller and mandatory protection source of the good, SDCMs will knockdown the insurance barrier of availability and affordability for both their own pursuits and those of the consumer.
2. Build Consumer Confidence
While self-driving vehicles have long made appearances in movies and books, they have yet to be tried out in real life by consumers. Buyers just have no idea what to expect nor if autonomous vehicles are a safe and reliable investment. What better way for a manufacturer to say their confident in their product than to guarantee it themselves?
3. Enhanced Consumer Car-Buying Experience
Few, if any, thrill in the idea of shopping for the best auto insurance quotes. With SDCMs providing insurance at purchase, the consumer can completely skip the middleman insurer and the entire painstaking insurance search and comparison process. Insurance would be available immediately at purchase and help offset the total cost of the vehicle, too.
4. Unified Pricing
The entire insurance procedure will be highly simplified for self-driving vehicles. Most insurance pricing roll around caveats of the driver – driving record, age, gender, and so forth. Adjustments are made for probability of human error, too. With autonomous vehicles, however, insurance will not have those revolving doors of ifs. Pricing will merely be based on the vehicle itself, or rather based on the software and hardware installed.
If the technology is the same in a given self-driving vehicle, then the price of insurance will be the same whether it’s senior with a few accidents on their record, a newbie driver with no experience, or a businessman logging hundreds of miles each day.
5. Drives Insurance Prices And Liabilities Down
Autonomous cars can be commercialized after SDCM’s demonstrate that they are safer than cars driven by humans, which will then enable SDCM data banks to determine exact probabilities for accidents and the resulting costs.
Did you know that IBISWorld reported that auto insurance was a $259 billion dollar industry in 2017? To put into perspective just what a huge marketplace that is, the entire U.S pharmaceutical industry was valued at $446 billion in 2016.
Insurance costs will significantly decline with SDCMs focused on accident prevention and offering insurance prices based on real-time accident and fatality data. This should in unison expand the market and make car ownership more affordable for everyday consumers.
The insurance reduction in cost should not just be a one-and-done situation, either. Consumers should see continued drops in insurance pricing as car manufacturers and software vendors publish updates and releases to the safety of the self-driving vehicles.
This article is oriignally posted on Tronserve.com