Tesla has begun to bundle insurance and maintenance costs with their vehicles, offering a potential glimpse at the future of purchasing cars in the driverless era.
Insurance will need to evolve with the rise of autonomous vehicle technology and current government plans lean towards manufacturers being responsible if accidents occur when the occupier hands over control to an onboard computer. This will increase potential costs for manufacturers, and we all know costs get passed on to customers.
Some owners have reported the plans have already lowered premiums
Rather than add on to a vehicle’s overall cost, car manufacturers will begin to bundle insurance policies from select partners with their vehicles alongside maintenance costs to ensure the cars are in peak condition and reduce the risk of them having accidents which lead to manufacturers having to pay out.
Tesla has begun rolling out such a model in Asia. "It takes into account not only the Autopilot safety features but also the maintenance cost of the car," said Jon McNeill, President of Sales and Service at Tesla. "It’s our vision in the future we could offer a single price for the car, maintenance, and insurance."
Rocketing insurance premiums are putting driving out the question for some people on lower incomes, which subsequently provides them with fewer opportunities in terms of both work and leisure. Driverless cars are expected to reduce the number of accidents on the road due to most being caused by human error, and this should lead to lower premiums.
"If we find that the insurance providers are not matching the insurance proportionate to the risk of the car then if we need to we will in-source it," Tesla CEO Elon Musk said during the company's Q4 2016 earnings call. "But I think we’ll find that insurance providers do adjust the insurance cost proportionate to the risk of a Tesla."
In Hong Kong, Tesla has partnered with AXA General Insurance for its ‘InsureMyTesla’ program. In Australia, the company has selected QBE Insurance. Some owners have reported the plans have already lowered premiums. A future of mandatory insurance with new vehicle purchases will also reduce the plight of uninsured drivers.
For now, the Department for Transport (DfT) in the UK announced driverless insurance plans earlier this month for ‘two-in-one’ policies which covers a vehicle being controlled by a driver separate from a car being driven by a computer. When a driver is controlling the vehicle, the onus will be on them for any resulting accidents. When an onboard computer is in control, manufacturers will take responsibility for incidents as long as the owner has kept the vehicle updated and maintained.
Should insurance and maintenance costs be included with driverless vehicle purchases? Let us know in the comments.
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