Driverless cars could cut car insurance by nearly two thirds
Driverless cars could cut the cost of motor insurance by a staggering 60 per cent in the future, according to new research.
But even other high tech extras already starting to appear will help bring the price of a policy down before then, it added.
The study by analysts Autonomous Research predicts UK car insurance costs will be reduced by almost two thirds by the year 2060, knocking a total of £14billion off premiums.
While that may seem a long way away, recently developed aids such as emergency braking and automatic parking will put a dent in costly policies before then, it adds.
Automatic brakes could prevent rear-end collisions
In the UK alone, a third of all claims are a result of rear end collisions, with two thirds of these at speeds of under 30mph.
Automatic brakes that cut in when it senses a rear ender is about to happen will prevent many of these.
And up to one in four claims are down to scrapes and scratches from parking or getting too close to other vehicles which will be reduced by parking sensors and hands free parking, it claimed.
The average cost of a motor policy in the UK is £357 according to Auto Express magazine. This could be reduced to less than £150 over the next few decades thanks to technology.
Automonous Research said the percentage of motorists making a claim will fall from the current level of nine per cent to just 2.4 per cent by 2060.
The report said: “While Google & Tesla focus on fully autonomous solutions, established car makers have opted for a gradualist approach, progressively introducing advanced driver assistance systems (ADAS) first to the luxury end of the market, then more widely.
“Research suggests that these technologies prevent crashes. Depending on price, there is public appetite for them.
“Historically it takes 15 years for new technology to penetrate 95% of new car sales, a further 15 years to fully penetrate the fleet.
“However it could be quicker this time around given the sea change in customer experience.”