Buying a car is a big investment, and you want to be able to use that car to drive your family around safely. In this article, the author explores the future of vehicle insurance with the rapid advancements in technology.
How the Future of Car Insurance Could Change
Currently, car insurance companies charge premiums based on how much you drive; as you drive more, so does the cost of your car insurance. This is one of the reasons that many people are hesitant about purchasing a new vehicle. However, with the future of autonomous vehicles and driverless cars coming closer every day, auto insurance rates could change in the near future. As mentioned before, autonomous cars will only need to be insured if they’re owned by a company that allows their drivers to use them.
With the invention of autonomous vehicles and self-driving cars that are expected to be on the market by 2020, car insurance policies will change drastically. As a result, car insurance providers have already been warning car owners not to have their vehicles insured with them given these changes.
The Impact of Automobile Insurance on the Economy
In the United States, car insurance is one of the leading causes for personal bankruptcy. This increase in bankrupcy has led to a decrease in auto loan and home loan availability. With an increase in average insurance rates, people would have to spend an extra $600 billion per year on car insurance alone just to keep up with increased claims costs.
With the ever increasing cost of vehicle ownership, insurance is essential. However, that doesn’t mean car insurance is easy to understand. Many people get confused trying to figure out what their policy means and it becomes a difficult process. According to one study, 69% of Americans are confused by their policies in the first year and over 50% have no idea how much they paid for their insurance.
What to Consider When Purchasing Car Insurance
Consumer Reports says that it is important to purchase car insurance before you buy a new or used car. The article also warns against cheap insurance companies because they tend to be less reputable and are more likely to drop your coverage if something goes wrong.
If you are looking for a way to protect yourself from the financial burden of purchasing a new car, it may be time to consider car insurance. It is important that you find the right company and plan. If you are buying a used car, your options for insurance are fewer. Before purchasing insurance, it is important to know what coverage types and options exist for your needs.
In the third article, we discussed the future of how insurance will become a thing of the past and that new age technology is going to change things. More and more cars are being equipped with all types of sensors, and if buzzers, lights, or other indicators are detected in the car, then it automatically takes some action.
One of the biggest concerns for vehicle owners is the risk that insurance companies take on when they insure their vehicles.