The Future of Auto Insurance: How Autonomous Mobility is Changing the Game

Q&A Style Post:

Q1: How will autonomous vehicles (AVs) and electric vehicles (EVs) impact auto insurance?

A: Insurance will gradually shift from covering individual drivers to covering automakers and software companies responsible for AV technology. Risk assessment will focus more on technology performance than human driving errors.

Q2: Why could insurance premiums increase despite improved safety?

A: EVs and connected vehicles have complex and expensive components. Repairing them often requires specialized equipment, software updates, and calibration — which raises costs.

Q3: What recent developments show this shift is accelerating?

California now allows robo-taxis like Waymo and Cruise to operate 24/7.

Major automakers are investing $1 billion to add 30,000 EV charging stations in the US.

Half of US states permit autonomous trucks, with big retailers already using them in logistics.

Q4: What challenges remain?

Lack of widespread charging infrastructure.

Unclear legal responsibility in accidents involving AVs.

Low adoption of embedded insurance offered directly by automakers.

Q5: How should insurers prepare for the future?

Build partnerships with technology companies.

Develop new products to cover emerging risks, such as driverless fleets.

Adapt business models to a changing value chain where software plays a central role.