Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

Full Bio →

Written by

Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florid...

Full Bio →

Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Nov 15, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Whether you like it or not, the idea of a driverless car seems to be slowly looking like that it will one day become a reality. Aside from those involved in the testing of vehicles, it’s safe to say that the majority of drivers across the United States have no idea as to how the concept of a driverless vehicle will actually work. However, that uncertainty has done nothing to curb the excitement that many drivers across the country have.

In Fact, check out this Self-Driving Car Test by Steve Mahan a Googler: 

Rush hour commutes can be agonizing; aggravating at best. For those that drive to and from work every day, rush hour traffic can make a 45 minute commute take 2 hours or more. Because you’re stuck behind the wheel, you’re productivity is incredibly limited. For those that take the train, there are more opportunities to get a jumpstart on your work for the day. Unfortunately, you’re faced with the drawback of overcrowded and uncomfortable trains and busses.

Imagine being able to sit in the privacy of your car, eating breakfast and getting a head start on your work while your car does the driving for you. That would be a dream-come-true in so many ways for most commuters. It is the idea alone that has drivers so giddy about driverless cars. According to CNBC driverless cars are ready, but consumers and insurance companies are not ready for them yet.

Car manufacturers realize this, as do some of the world’s biggest technology companies. That’s why Google, Mercedes-Benz, GM, and more are sinking millions of dollars in research and development and the testing of these cars. In fact, GM has already said that they plan to release their first driverless car in roughly 6 years.

Insurance companies, however, aren’t necessarily sharing that same sense of excitement that is held by both the general public and car manufacturers.

So why aren’t insurance companies overly crazy about the concept? It’s all about the claims and the money.

Those questions alone underline the impact that driverless cars are having on insurance companies. However, the questions don’t stop there. Should a driverless car malfunction and cause an accident, who will be at fault: The individual occupying the driverless car or the car manufacturer?

As you start to consider the questions, it becomes clearer and clearer as to why driverless cars pose a potential major headache for car insurance companies in the United States, and around the globe. On the flip side, Chunka Mui, a contributor for Forbes states “Google’s driverless cars are worth trillions”.

One thing is certain, though. The technology for driverless cars exists, and the concept will very soon become a reality for most drivers, car manufacturers, and auto insurance companies around the world. There is also no doubt that insurance companies will, in conjunction with the federal government, come up with some sort of regulations and insurance terms and conditions that best suits cars that drive themselves.

What the regulations, terms, and eventual costs will be; we can’t be so sure right now. However, it is only a matter of time before we find out, and until then, all we can do is speculate.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.