New report predicts a 30 percent drop auto insurance costs due to reduced accident rates in the next 25 years.
In the past few years, auto insurance claims have become more costly to insurers due to the increased costs of medical care and auto repairs. This has been driving up auto insurance rates. However, a new report from Deloitte Consulting predicts this is just a short-term trend.
According to the report, which is titled “Insuring the future of mobility: The insurance industry’s role in the evolving transportation ecosystem,” auto insurance premiums are actually going to start decreasing as driver behavior changes over the next 25 years.
Specifically, consultants from Deloitte predict that we will see:
- A reduction an auto accident injury claim frequency as vehicles become partially or fully autonomous, thus eliminating the risk of accidents from driver error.
- A reduction in the total number of vehicles on the road as ride-sharing services like Uber and Lyft continue to become more popular in urban areas.
- A reduction in the number of personal auto policies as more individuals shift away from owning their own cars to using car-sharing services.
After using several models to predict the impact of these trends over the next 25 years, the Deloitte consultants predict that auto insurance premiums will drop by up to 30 percent.
Auto Accident Liability Will Be a Constant
Regardless of how much they charge for premiums, auto insurance companies will continue to have to pay out when policy holders cause auto accidents.
Individuals injured in auto accidents can seek compensation for all kinds of damages resulting from their accidents, including:
- Immediate medical bills
- Bills for future medical treatments
- Projected costs of long term care
- Lost wages
- Lost earning power
- Emotional anguish
- Pain and suffering
- Property damage
Adding autonomous vehicles to the mix may complicate auto accident injury cases somewhat. For example, with no driver behind the wheel, it would be logical to assume that the manufacturer of the vehicle, rather than the owner or occupant, would be liable should the vehicle malfunction and cause an accident.
Need Help with an Auto Accident Injury Claim?
If you have been seriously hurt in a car accident that was not your fault, Fernando D. Vargas can help you fight for full and fair compensation. As an experienced auto accident injury attorney, Fernando D. Vargas is not afraid to stand up to the insurance companies and make sure you receive a fair deal. To discuss your case for free, please call us at 909-982-0707.
