{"id":719,"date":"2022-07-06T19:02:11","date_gmt":"2022-07-06T19:02:11","guid":{"rendered":"https:\/\/www.southernharvestinsurance.com\/blog\/?p=719"},"modified":"2025-08-22T14:23:44","modified_gmt":"2025-08-22T14:23:44","slug":"self-driving-cars-in-ga","status":"publish","type":"post","link":"https:\/\/www.southernharvestinsurance.com\/blog\/auto-insurance\/self-driving-cars-in-ga\/","title":{"rendered":"The Impact of Self-Driving Cars on Auto Insurance in Georgia\u00a0"},"content":{"rendered":"
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The future is almost here. It may soon get to the point where Georgians might see a vehicle with passengers in the backseat and no one behind the wheel and not be freaked out about it. What will that mean in terms of <\/span>car insurance<\/span><\/a> costs?<\/span>\u00a0<\/span><\/p>\n

It\u2019s a good question with lots of variables in the answer. Let\u2019s start with a basic definition.<\/span>\u00a0<\/span><\/p>\n

A self-driving car is also known as an autonomous vehicle, or AV. AVs are continuously being tested on roads in Arizona and elsewhere. Cars called robotaxis <\/span>(talk about the future!)<\/span><\/i> are in partial operation on a trial basis in one U.S. location. Fleets of autonomous 18-wheelers are also being cautiously tested.<\/span>\u00a0<\/span><\/p>\n

The technology isn\u2019t ready for prime time yet, but there\u2019s no doubt that there will come a time when they\u2019re available for sale, legally driving on the road, and a common sight throughout the country.<\/span>\u00a0<\/span><\/p>\n

What will that mean for <\/span>the cost of car insurance<\/span><\/a>? Will it go up or down? That\u2019s not an easy calculation, but here are a few of the leading factors that will determine the direction car insurance policies are likely to go when AVs are common and driverless vehicles are riding the highways and byways of the very near future in Atlanta, Augusta, and Americus alike.<\/span>\u00a0<\/span><\/p>\n

The Higher Cost of AVs Equals Higher Premiums in Georgia<\/h2>\n

There\u2019s a simple reason why <\/span>it costs more<\/span><\/a> to insure Ferraris than Fords. Ferraris cost more to replace or repair, so insurance companies have to pay more in claims if the sportier vehicle is stolen or damaged.<\/span>\u00a0<\/span><\/p>\n

It\u2019s likely to be the same with AVs, at least when they first come onto the market. They\u2019ll cost more than traditional vehicles. Probably a whole lot more. So for that reason alone, it\u2019s likely that car insurance premiums on them will be higher than what you\u2019re used to paying for coverage.<\/span>\u00a0<\/span><\/p>\n

Robots Drive Better Than You \u2026<\/h2>\n

The \u201cdriver” of an AV is artificial intelligence, or AI. That\u2019s a computerized system that uses <\/span>sensors, software, machine learning, satellites, and other technologies<\/span><\/a> to safely navigate and drive a vehicle. If you want to describe the technology using sexier language, it\u2019s a robot chauffeuring you and the kids in your car.<\/span>\u00a0<\/span><\/p>\n

It\u2019s a robot with lightning reflexes that obeys all speed limits. It never gets tired, drinks, or takes illegal substances. It never experiences road rage or makes bad decisions based on out-of-control emotions. Theoretically, the robot powering the AV is flawless behind the wheel.<\/span>\u00a0<\/span><\/p>\n

That\u2019s got to lower the cost of insurance, right? The technology should radically reduce the risk of collision and deaths on the road. Since insurance companies will have fewer claims, they\u2019ll be able to pass the saving along to all of us.<\/span>\u00a0<\/span><\/p>\n

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\u2026 Except When They Don\u2019t<\/h2>\n

New technologies always have a few bugs. Think about your hulking, expensive, and oh-so-slow first computer. How often did it crash?<\/span>\u00a0<\/span><\/p>\n

That was annoying. But when a first-generation AV crashes, we mean it literally. It <\/span>crashes<\/span><\/i>. It makes poor decisions for reasons related to algorithms rather than emotions.<\/span>\u00a0<\/span><\/p>\n

Sometimes robot drivers tragically kill people.<\/span>\u00a0<\/span><\/p>\n

Besides the human tragedy of such events, there are a lot of insurance decisions to be made. Who\u2019s at fault when a car powered by AI causes an accident? Certainly not the driver, because \u2026 <\/span>there is no driver<\/span><\/i>.<\/span>\u00a0<\/span><\/p>\n

Will AV owners get sued, even though the collision isn\u2019t their fault? The government must have a voice in making that determination. Will laws be written and procedures put in place to assign financial blame when AVs get into accidents? If not, will car insurers react with costly premiums to protect their bottom line?<\/span>\u00a0<\/span><\/p>\n

Will You Need Car Insurance in Georgia If You Don\u2019t Own a Car?<\/h2>\n

It\u2019s possible that the high cost of AVs will never actually come down. Maybe the vehicle (and insurance rates) will be so high that the average person only pays for the service of being transported in an AV rather than ever owning the vehicle. Maybe AVs will mostly be used for rideshare duty.<\/span>\u00a0<\/span><\/p>\n

In that case, car insurance providers might not sell policies to individual vehicle owners at all. Maybe their primary customers will be corporate AV fleet owners. The immense buying power of companies buying insurance for thousands of vehicles at a time might bring the cost of coverage down.<\/span>\u00a0<\/span><\/p>\n

Or \u2026 maybe the cost of car insurance stays high, and the corporate fleets pass that cost along to riders in Georgia and elsewhere. If that\u2019s the case, will you opt for an AV ride when you need it, or instead continue to lease or buy conventional cars with humans behind the wheel? Will you have the choice? What if a time comes when AVs are the only accepted transportation on the roads?<\/span>\u00a0<\/span><\/p>\n

Decision Time Might (or Might Not) Be Sooner Than You Think<\/h2>\n

Some analysts are predicting that the first AVs will hit the market as early as 2026 (though that\u2019s looking rather optimistic). Whenever the sight of driverless cars on Georgia roads does become a common sight, you won\u2019t have to make an immediate decision on your AV car insurance.<\/span>\u00a0<\/span><\/p>\n

It\u2019s unlikely that the average driver will be able to afford the first AVs, to say nothing of the cost of insuring the purchase. As a result, it will still be some time before most vehicles on the roads of America \u2014 and the Peach State \u2014 will be piloted by robots.<\/span>\u00a0<\/span><\/p>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n\n

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You\u2019ll Always Be Able to Find Affordable Car Insurance In Georgia\u00a0<\/h2>\n\n
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You\u2019ll always be able to get car insurance answers from your independent insurance agent at Southern Harvest. Call us at <\/span>(877) 831-4677<\/span><\/a>, or find a Southern Harvest Insurance office in Georgia <\/span>near you<\/span><\/a>. You can also get a <\/span>car insurance quote online<\/span><\/a> at your convenience.<\/span>\u00a0<\/span><\/p>\n <\/div>\n