Automated vehicle technologies to affect insurance behaviors
The effect that automated vehicles will have on traffic accidents, liability, and consumer purchase patterns has been a major topic in the property and casualty (P&C) insurance industry. Auto Insurance premiums represent most of the industry’s revenues, and the growing presence of automated vehicle technologies has left many observers wondering how this change in mobility will impact the nation’s largest property and casualty carriers. J.D. Power’s P&C Insurance Industry practice asked consumers how automated vehicles may change their insurance behaviors. Key highlights from the J.D. Power Pulse Survey include:
- Twenty-two percent of consumers are likely to consider a “highly-automated” vehicle for their next purchase.
- Forty percent of consumers are willing to switch insurance carriers for “autonomous discounts.” Nearly 70% of consumers are expecting insurance carriers to respond with discounts for vehicles that provide these enhanced safety features, and more importantly, 40% are willing to switch their auto insurance to carriers that do.
- Among consumers polled, the following are the top three factors that will influence the decision to purchase an automated vehicle:
- 26% fewer accidents
- 24% less driving stress
- 15% lower insurance premiums
- As far as personal liability, who is at fault in an automated vehicle crash? Nearly 40% of consumers say that drivers have some responsibility when an accident does occur in an automated vehicle, compared to just 22% who say the OEMs or the manufacturers of the autonomous sensor technology are to blame.
The J.D. Power Pulse Study on Automated Vehicles and Insurance was authored by Tom Super, Director of the Property and Casualty Insurance Practice and Robert Lajdziak, Insurance Business Consultant at J.D. Power. The survey includes responses from 1024 U.S. consumers, and was fielded in May 2018.