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10 Major Changes in the Auto Insurance Industry in 2016

Check the top 10 major changes in the auto insurance industry in 2016 and check our website for free insurance quotes online auto.

  1. new1 - Getting-Vehicle-Insurance-Quotes-OnlineFirst fatality caused by an autonomous car. Last year, in May, was recorded the first death caused by a self-driving car. The involved model was a Tesla Model S on autopilot. The driver dies when the vehicle crashed into a tractor-trailer.  This event raised concerned about the safety of autonomous cars and highlighted the importance of car insurance for self-driving cars.
  2. Continuous growth of insuretech. New devices and business plans allow for more effective premium determination. Usage Based Insurance programs become more and more popular. Investments in insuretech surpassed 1 billion dollars last year.
  3. Traffic fatalities come up as high as 10%. Data presented by NHTSA show that traffic deaths were up 10.4% in the first half of 2016 over the same time period in 2015. As a result, the NHTSA and NSC announced a new Road to Zero coalition that aims to decrease and eliminate all traffic fatalities.
  4. Car sharing and ridesharing programs continue to grow. Services like Uber, Lyft and Zipcar become more popular and get millions of active users.
  5. Uber begins testing autonomous cars in Pittsburgh. Tests began in September and after satisfactory results,  it encouraged usage in San Francisco, but was quickly penalized by California DMV for not complying to state law.
  6. A comprehensive self-driving car insurance plan in Michigan.  Michigan authorities released a comprehensive statewide legislation regarding autonomous cars and their testing.
  7. More mobile apps for car insurance. Numerous companies released auto insurance mobile apps for their clients and potential new ones.  Some apps even streamline the claim process and provide guidelines and feedbacks.
  8. New Secretary of Transportation. The new secretary, Elaine L. Chao, shows appreciation for sharing models.  Her perspective on self-driving cars is not yet known. It is important to watch if Chao advocates more for drivers and riders or for the car manufacturing companies and new mobility choices. Her option will affect the car insurance industry, as any changes in semi- or fully autonomous vehicles and shared mobility will filter out to auto insurance providers.
  9. Governmental self-driving car guidelines. In September, the U.S. Department of Transportation released their Federal Automated Vehicles Policy.
  10. More expensive premiums. The average car insurance premium increase was 6%.  States like Florida and California saw an even larger hike in rates, with some premiums increasing by as much as 10%.

 

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