Driverless Cars Bring Insurance Antitrust Issues
Driverless cars are not far in our futures. The technology is coming along nicely, but all the legal and legislative issues are proving complex. One of the biggest challenges is determing who will be responsible if the car causes an accident and it could keep antitrust investigators very busy. The idea behind antitrust laws is to make sure companies don't agree on a set price or set offerings for a product. This would prevent competitors from being able to compete and it would keep potentially better offerings from making it to consumers. The antitrust isses with driverless cars surround insurance policies. RELATED: Here's Where Reckless Driving, DUI Destory Your Insurance Premiums
Once automakers take responsibility for accidents caused by problems with driverless tech, then they're in the insurance business and that business is a big one. According to Forbes, car insurance brought in premiums of almost $200 billion last year. The move to driverless cars is estimated to shrink the car insurance industry by 60 percent over the next 25 years.
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That big shift means a big potential for antitrust issues as automakers try to figure out what liability insurance they should offer for their driverless cars. It poses the same issue for insurance companies as they try to figure out how to remake themselves amid shrinking demand. A new car insurance landscape is yet another challenge to overcome as driverless cars take to the roads.
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