Finance Professional Asserts With Self-Driving Cars Coming, Car Insurance May See Big Changes

Self-driving vehicles are a hot topic in the tech and automotive industries. Talk of these cars is usually all fun, but what about car insurance? Understanding how the technology will affect insurance and comparing rates now can save drivers money today and tomorrow.

Tampa, FL – August 29, 2017 /MM-LC/ —

Self-driving vehicles are one of the hottest topics in the tech and automotive industries today. While thoughts of such cars may conjure images of the Jetsons and a future that is far out of reach, that future has arrived with Cadillac offering a vehicle boasting a “true hands-free driving experience” as early as Fall 2017. When talk of these cars arises it’s usually all fun: the bells, the whistles, how fast will it go, what will the computer interface voice sound like? But there’s a much more pedestrian concern that frequently gets pushed by the wayside: what about car insurance?

That car insurance is often overlooked does not surprise Joel Ohman, a Certified Financial Planner and principal of CarInsuranceComparison.com. “Car insurance is literally the last thing most people want to think or talk about. It may not be the most exciting topic, but everyone wants to save money and it’s a place where people really can save on something they have to pay for anyway.” Although insurance doesn’t have the allure of fancy technology, a recent study showed the average American spends about $900 per year on car insurance with California residents paying a whopping $1,962 per year on average. How these rates will be affected by the introduction of smart cars is a concern for every driver.

“Car insurance is already expensive and, in the short term, it is likely that rates will increase due to uncertainty about the new technology,” Ohman warns. “That means it’s really important for each person to ensure they’re getting the best rate they possibly can.” There are many factors that influence car insurance rates. While some—like age and gender—are well known, others are less evident. Changes in marital status, children leaving the home, or a move of even a short distance can also impact how much an individual shells out each month.

Even with all these factors being the same, different companies charge different rates, and the variance can be startling. As such, it’s important for consumers to have a neutral basis of comparison between companies. Most company websites only feature their own rates and, even when they offer comparison tools, some will only show competitor rates higher than their own making true assessment difficult. But perseverance often does pay off, and sometimes big, Ohman says. “Some people save hundreds over the course of a year by changing their car insurance company, so it’s really worth it to take the time and find the best rate.”

Though the smart car era is on the horizon, most people are still relying on their own human driving skills to get from point A to point B and these aren’t always so great as CarInsuranceComparison.com’s popular “Worst Drivers by State” report shows. The study, which is conducted by the website’s in-house team of researchers and analysts and has been featured in media outlets including USA Today, takes into account things like fatalities per million miles traveled, drunk and careless driving rates, and violations like seat belts and disobeying traffic signals in its analysis. And just who are the worst drivers? Though New Yorkers are often the butt of jokes about crazy driving, Texas and Louisiana tied for the top spot with New York way down at number 30. Who are the best? Minnesota and Vermont rounded out the bottom of the worst drivers list, making them the safest drivers in the country.

It is likely that these rankings will even out as smart cars take hold since their algorithms are thought to be more exact than human cognition and impervious to common distractions like cell phones and food. This spells good news for insurance rates in the long term, Ohman notes. “Although the rates will likely increase in the short term, in the long term, they’re more likely to go down as the technology proves itself and gets even safer.” Aside from affecting rates, this new technology may reshape insurance all together as questions about culpability and liability come to the fore. “It’s definitely an exciting time in the industry,” Ohman adds, “It’ll be interesting to see how it all pans out.”

For now, though, getting the best rate is still the primary concern as car insurance goes and comparison is still the key. Taking a few minutes to look at a few different rates now can keep a lot of dollars in drivers’ pockets later.

Contact Info:
Name: Joel Ohman, Principal
Organization: CarInsuranceComparison.com
Phone: (727) 641-2339

For more information, please visit http://www.CarInsuranceComparison.com

Source: MM-LC

Release ID: 234064