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How Will Self-Driving Cars Change Insurance?

As technology companies and automakers continue to work towards creating self-driving cars, there is still no way to know how these vehicles will influence the law. One of the biggest and most important questions is how will self-driving cars change insurance? In this video, attorney Phil Chupick discusses this question and the legal problems it may create if self-driving cars become a reality.

Video Transcription

The future of insurance and how it might change as we get more and more self-driving cars on the road is a little bit of a question mark. Some manufacturers, like Volvo and Mercedes, have pledged to take on all the liability themselves, if one of their cars is in an accident. That’s a pretty big pledge. We have in Colorado a $25,000.00 minimum insurance. So, you can get hit by someone and be catastrophically injured, and they may only have $25,000.00 of insurance. When a car company, or if a car company, takes that liability, it may be that they’re only obligated to get $25,000.00 of insurance. Or the law may change, hopefully—that’s what I would be in favor for—and require those automobile manufacturers to insure them for much higher limits. Like a commercial limit would be in the million-dollar range.