Who’s Driving?
Many folks nowadays look to leasing, not only for a more affordable payment, but also for the fact that they can drive a new vehicle every three years or so. This in and of itself is a huge benefit for multiple reasons, including the inherent benefit of being able to take advantage of the latest technology that is released in each new car yearly upgrade. Recent enhancements have included features such as crash avoidance systems like blind spot monitoring, front and rear collision warnings, rear and side view cameras, calculated tire pressure monitoring, and more.
However, one of the most long awaited (and equally most controversial) is the “fully automated” or otherwise known as “autonomous vehicle,” that is a true driverless car, that has been promised by the auto industry to be available by 2020.
Although the insurance industry is expecting the number, frequency, and possibly the severity of motor vehicle accidents to be greatly reduced, the insurance industry is still extremely concerned that liability claims may increase both in number and potential defendants as it is widely assumed that drivers who would normally be considered at fault in these accidents will attempt to pass off the “at fault” and liability of the accident to the manufacturers of the vehicle and its components, blaming the accident on them, as opposed to driver error.
According to a recent study by the Insurance Institute for Highway Safety (IIHS), it was discovered that recent improvements in design and safety technology (similar to those mentioned above) have led to fewer fatal accidents by more than a third over three years, when a late model car is involved. Nine of the vehicles studied had no fatal accidents per one million cars registered. However, the study also determined that the lower fatality rate may also have been helped by the fact that we have been in a weaker economy, which has caused less people to be driving, and therefore a lower number of cars on the road.
The IIHS study also found when looking at 2011-year model cars there were on average 28 deaths of drivers per million cars through 2012. This number was down from 2008, when there were 48 deaths between 2008 and 2009. This lower death rate, according to the IIHS, was a direct result of electronic stability control, side airbags, and general structural changes.
Now, with those figures in mind and the fact that automation and technology have been the cause of the lower fatality rate, how will automated driving vehicles contribute to this? According to General Motors, the company will begin to offer a “super cruise system with hands-free automated driving” in 2016. This system will be operable only on freeways that have proper lane markings that the vehicle will identify. This also means that until these markings are widespread, the driver will have to be ready to take control of the vehicle as soon as the markings disappear. These vehicles will also be equipped with a device that will alert the driver to be aware, and not let the car go on ‘auto-pilot.” Toyota has announced that it will offer a crash avoidance system in their Toyota and Lexus brands in 2017, and Daimler is currently offering a system that allows a car to brake, accelerate, and remain in its lane automatically, without the driver having to react when the vehicle is traveling at 16 mph or less.
Even Google is getting into the act, as it has announced that it is building a vehicle that does not have a steering wheel or need for a driver. Reason that it is eliminating driver intervention totally is because at this time it has not developed a means to switch control interchangeably between the driver and the automated process, and does not expect to be able to do this anytime soon. The beta version of this car will have a maximum speed of 25 mph, and may be summoned by a smartphone…watch out Uber!
Other manufacturers are claiming that they are developing technology that can safely make the switch from automated to driver control, and Volvo expects testing these vehicles by 2017. Industry experts have also said that before these vehicles may be put into production, the size and cost of the sensors must be reduced.
A few states have also voiced federal agencies in 2014 approved vehicle-to-vehicle (V2V) communications systems that will allow cars to “talk” to each other so that they know where other vehicles are and can compensate for a driver’s inability to make the right crash avoidance decisions because of blind spots or fast moving vehicles. V2V communication uses a very short range radio network that, in effect, provides a 360-degree view of other vehicles in close proximity. The Department of Transportation estimates that safety systems using V2V communications will be able to prevent 76 percent of crashes on the roadway.
However, according to an independent study, of all the obstacles facing this new technology, the top three roadblocks will be: legal liability, policymakers and consumer acceptance. In addition, some states have also voiced opinions. In 2013, Michigan, California, Florida, Nevada and Washington DC began allowing the testing of autonomous vehicles on public roads. Michigan law states that drivers must remain in the driver’s seat at all times while the vehicle is on the road. According to Property and Casualty Insurer’s Association of America, the Association of California Insurance Companies is advocating that the manufacturers of these types of vehicles retain all liability for damage, losses, or injuries caused by the operation of these vehicles as required by the enabling law (SB 1298). Other states are also considering such legislation as well. The US Department of Transportation allows states to permit limited testing of autonomous vehicles, but not the sale of these vehicles, and a 2014 study by the RAND Corporation includes a discussion on the liability options; suggesting that the concept behind no-fault auto insurance laws might become an attractive alternative to tort-based laws as the use of automated vehicles becomes more widespread.
I am certain that we will be hearing so much more about these types of vehicles, along with the laws that will govern their testing and sale, and I will be covering this topic and bringing it to you in living color in this very column as it progresses…so don’t touch that dial and stay tuned for coming attractions!
Well, so many times over the past 7-½ years that I have been writing this column, I have talked about the successes and accomplishments of so many folks within this thing of ours. Today, I am going to brag a little, and toot my own horn, as I am very excited to announce that I have accepted a position as Regional Director with Advantage Partners, Inc., in New York. Advantage Partners Inc. is the #1 preferred agent network, dedicated to working exclusively with select independent insurance agents who need access to top insurance carrier markets. Representing the most competitive major insurance companies, Advantage Partners Inc. offers no fee, no up-front costs or long term contracts, and provides agents with the opportunity to earn carrier profit sharing, along with incentives and bonuses, while the agent owns and retains 100% of the business. For more information, please contact me at 631-345-9359 or michaell@apagents.com
Additionally, I want to thank EZLynx and their staff for the many years that I have enjoyed being a part of their team. EZLynx has done, and will continue to do, so much for the insurance industry and I wish them all the best in their continued effort to serve our industry for many years to come!
Well, next time we chat we will be discussing some exciting events such as the Council of Insurance Brokers and Agents annual event held in “the garden spot of the world,” good ol’ Brooklyn, NY! So until then, “Ciao for now!” and from my family to yours, a very happy and safe Thanksgiving holiday!