Delaware Business Insurance Update From CNC Insurance Associates Inc., "Self Driving Cars Who is Liable? " 7-6-14

Google is one of the few companies that are developing a self driving car for mass production and sale.  The other car companies like Toyota, GM, & Ford are doing the same. I can  imagine in a few years these cars will be blazing down the highway at 60 mph with the passengers reading their IPads and texting because the car is doing the driving.  Now comes the insurance question. If the robot malfunctions and the car crashes into another, who is liable?  This is a question that insurance companies are asking right now. The answer is important because it could change car insurance as we know it.  People buy car insurance to protect them from the financial risk of causing injuries with the vehicle. As a matter to fact most of the premium in auto insurance is the result of  driver caused liability losses. If robots drive, one it is expected that accidents will be minimum and also the car owner would not be responsible for crashes, or at least minimally responsible. If this plays out then expect car insurance rates to drop significantly. We will have to see how this develops. In the mean time keep paying those car insurance premiums. Until next time be careful out there and know your risks.
G. Kevin Nemith, President CNC Insurance Associates & The Small Business Insurance Center
Serving DE, MD, PA, VA & NJ
www.cncinsurance.com
www.bizinsurancetv.org


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