Google has just unveiled a driverless car. Computer chips and sensors but no steering wheel. Sounds great. Good for environment. Bad for insurance companies. Insurance is a function of individual behaviour. Your driving record establishes your risk premium. Drivers must have insurance. Lawyers love insurance and the litigation industry it feeds.
Driverless cars sidestep the liability issue. Controlled in such a way to avoid accidents the good record vs bad record becomes irrelevant. Insurance becomes unnecessary. Insurance companies become unnecessary.
The American consumer is the big winner. Imagine household budgets without the burden of car insurance premiums. Better than a tax cut. this will be a long term stimulus which should lift most consumer boats in the US economy. Big savings for many businesses large and small.
How can I make your life better. eliminate my car insurance premiums and now I can spend more money on other goods and services or carry a larger mortgage on a better home.
George Gutowski writes from a caveat emptor perspective.