09/03/2026
Autonomous Vehicles Will Reshape Motor Insurance
We're on the cusp of a major shift in motor insurance, thanks to the rise of autonomous vehicles. As vehicles with level 3 to 5 automation become more common, we're likely to see fewer accidents on the road—a positive development for everyone’s safety. However, these advanced cars also come with higher repair costs, and as shared mobility grows, we may see a move away from individual car ownership. Industry forecasts suggest the total number of vehicles on the road will keep rising until about 2035, with the insurance risk pool leveling off by 2040 and then starting to decline by 2050. For those of us in insurance, it’s important to recognize that while fewer accidents are good news, claim severity could increase due to the technology involved. At the same time, more people may opt for shared autonomous fleets, which could reduce traditional personal motor premiums. We may also see liability shift from drivers to manufacturers and software providers, making strong partnerships between insurers and manufacturers more important than ever—sometimes even embedding coverage right into the purchase price of the vehicle. Agencies that can stay ahead with diverse portfolios, strong technology, and local expertise are best positioned to help clients navigate these changes. As your Boone County neighbor, I’m committed to keeping you informed and prepared for this evolving landscape—always with the professionalism and respect you deserve.
