General Motors, Ford and other established automakers risk becoming relics if they don’t catch up to Chinese carmakers and technology companies in electric vehicles and self-driving cars.
General Motors, Ford and other established automakers risk becoming relics if they don’t catch up to Chinese carmakers and technology companies in electric vehicles and self-driving cars.
That makes zero mathematical sense.
It does if you understand how insurance works.
The insurance companies pool all of the premiums they receive and pay claims out of that. The more people paying into the pool, the lower the financial burden of a single payout.
With auto insurance specifically, everyone with a different insurance company paying into that company’s pool is further mitigating the risk.
If self driving cars aren’t required to carry insurance, then the number of people paying into the pool is going to shrink but the total cars on the road won’t at the same rate.
Since fully autonomous vehicles are going to be way more expensive than manually driven vehicles, the premiums will need to rise dramatically.