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There may be a place for car insurance in the future

Drivers in New York may have heard reports saying that insurance companies will experience a sudden decline in revenue once driverless cars become more mainstream. A 2016 report from Morgan Stanley predicted that by 2040, the insurance industry would contract to only 20 percent of what it is now. However, recent accidents involving driverless cars, in addition to new research, point to a potentially different future.

Bloomberg New Energy Finance has released a report stating that auto insurance companies will likely experience a gradual shift in the type of insurance products they provide. Future premiums will probably be aimed more at manufacturers and technology companies and less at individual drivers. This is because the former will have the greater need for coverage. Automated driving technology is costly, and when cameras and sensors are damaged in car accidents, the average repair cost goes up.

Changes may even provide auto insurance companies with new sources of revenue as long as they are quick to adapt. An expert at FTI Consulting states that insurers could, for instance, provide cyber insurance to protect cars from getting hacked. Since current drivers only use autonomous tech for part of the time, insurers could try to cover both drivers and their vehicles.

Before fully automated cars become widespread, however, drivers are expected to maintain control at all times. When they fail to do so and cause accidents, victims may seek compensation for damages. Finding a lawyer who deals in auto accident law is crucial to success. An attorney could help a client by negotiating with the applicable insurance agencies.

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