Automated vehicles are quickly becoming the vehicle of the future, leaving us wondering how the insurance industry will handle insurance coverage for automated vehicles.


Currently, accident history and the average number of miles driven are both used to price how much vehicle insurance will cost the insured. This may leave the self-driving features of each particular model the important factor that will influence the cost of insurance.

Black Boxes

With automated vehicles, monitoring driver activity may become the norm. Currently, some insurance companies offer policies that are based on the driver’s behavior, which is recorded through a black box. While these boxes are not in wide use now, they may become more common, especially as insurers push for increased monitoring of automated vehicles.


In a perfect world, the number of accidents would with the use of automated vehicles, especially with human error taken out of the equation. This would likely result in reduced insurance costs.

The Downside to Automated Vehicles

With automation, costs may shift. For example, manufacturers and suppliers may be held more liable for accidents due to product failure, complex parts will be expensive to replace, and repair costs may increase. Which means that these new complications may make it difficult to ascertain if consumers will see a reduction in costs overall.

If you have any questions or are interested in how we can help to insure your vehicle, contact Brazelton Insurance Group today!