Driverless cars could save the US $784 billion

Driverless cars could save the US $784 billion

An Insurance Perspective on Autonomous Technology

Tesla’s Video of its Self-Driving Technology
It goes without saying that preservation of life is the reason to invest in road and car safety technology, but the financial implications that fatal and non-fatal accidents have on the economy areanother factor which cannot be ignored.

According to National Highway Traffic Safety Administration the total cost of prevention of reported road accidents is estimated to be $871 billion per year.

Fatal and non-fatal accidents impact financially upon the following elements.

● Medical Care

● Emergency Services

● Market Productivity

● Household Productivity

● Legal Costs

● Insurance Administrative Costs

● Workplace Costs

● Property Damage

● Congestion

Saving Lives

There were an estimated 38,300 people killed on US roads in 2015.

In a 2015 McKinsey Report, researchers estimated autonomous vehicles (AV) and advanced driver assistance systems (ADAS) could reduce accidents by up to 90 percent; more than 90 prcent of accidents each year are caused by human error , but with AVs this factor is obviously completely removed.

Using the figures provided by the NHTSA – the widespread adoption of autonomous vehicles could save the US approximately $784 billion per year.

It also means that self-driving cars could save as many as 34,470 lives per year, which over a period of a decade would equate to saving nearly 350,000 people.

‘Current and Future Car Safety Technology’ Resource

Until now, car safety technology development has been about assisting the driver’s manual actions and mitigating the adverse ones. However, we are in an era where autonomous vehicles completely remove the element of human error. In order to showcase these advancements in car safety and the shift from manual, to automated, to autonomous, have created a resource which documents both current and future technologies and their respective influence on making our roads safer. Current and Future Car Safety Technology also highlights which pioneering manufacturers are already incorporating these cutting-edge innovations into some of the more advanced vehicle models.

View the resource in full here.