Car insurance premiums predicted to fall when self-driving cars take over

Caeva O'Callaghan | November 15th, 2015

Consulting giant KPMG has some great news for car owners: car insurance premiums will fall drastically – but only once self-driving cars become the norm.

In a recently published white paper, KPMG says that these autonomous cars will not only usher in an era of faster commutes, safer travel and greater independence, but will also dramatically reduce car insurance premiums.

Not everyone in the insurance industry is happy about the prospect of plummeting car insurance premiums. Although 68% of insurance executives polled by KPMG believe the legal system will find a solution for insurance issues, KPMG believes that the transformation will completely revolutionise the insurance industry.

According to KPMG’s predictions, all new cars sold will be autonomous within the next 10 years, and non-self-driving cars will be capable of being retrofitted with autonomous features by 2025. The report claims that accident frequency will drop by 80% over the next 25 years.

All Information in this post is accurate as of the date of publishing.