Guiding consumers since 2009

Driverless vehicles could impact insurance premiums

By Staff Writer

The take-up of Google’s driverless car, once it is introduced in the South African market, could see consumers enjoying lower insurance premiums. Warwick Scott-Rodger, marketing manager at MUA Insurance Acceptances says if the risks posed by driverless vehicles do prove to be less than those posed by traditional vehicles, insurance premium should reduce.  
 

Scott-Rodger explained that risks, such as driving under the influence, would be taken out of the equation and this would ultimately result in premium reductions.  “In theory, this would make the industry even more competitive, forcing insurance companies to include additional value added services to make their respective offerings more attractive.”

 

It’s still unclear how much premiums are likely to reduce by. “In theory the insurance premiums should come down but I can’t speculate how much it will come down by as it’s still all a concept at the moment. The insurance reduction will depend on the length of time it takes for people to take up the car as well as the take up of car manufacturers,” added Scott-Rodger.


Since 2010 Google has tested several vehicles using the driverless system and the vehicles have clocked up 200 000 kilometres in the US. The project is currently being led by Google engineer Sebastian Thrun, director of the Stanford Artificial Intelligence Laboratory and co-inventor of Google Street View. 

Recent Articles

Featured Is a home loan a great savings tool?

There are many saving and investment options available to consumers. What you decide to use is dependent on your circumstances. But should you make your home loan your choice of a savings vehicle and how does that exactly work?

Everything you should know about tax auto assessment

In 2019, the South African Revenue Service (SARS) launched a system, which was dubbed an “auto assessment”, to assist taxpayers with their annual tax returns. But what does this system entail, and how will it impact you?

What does it mean to be a registered Financial Services Provider?

You may have noticed that financial institutions state that they’re registered Financial Services Providers (FSP). But what does this actually mean, and how does this benefit you as a consumer?

Should the retirement age change?

Across the world, people are retiring later than they used to. However, retirement products are centred around set retirement ages at which point you’d be able to access your retirement savings. But how applicable is the current retirement age in South Africa?

Deals

Earn up to 50% of your tax return submission fee back in eBucks

Price: Available on request
When: Daily
Where: Nationwide

Be part of the Belly Of The Beast Weekday Spring Special Lunch

Price: R350
When: From 23 September 2020
Where: Cape Town

Tony’s Roma Breakfast Special

Price: R39
When: Daily
Where: Cape Town


Latest Guide

Guide to debt rehabilitation solutions