Warren Buffett: AV's will hurt insurers
Grab our Forum Feed

+ Reply to Thread
Results 1 to 8 of 8

Thread: Warren Buffett: AV's will hurt insurers

  1. #1
    Join Date
    Jan 2011
    Location
    Illinois
    Posts
    15,117

    Default Warren Buffett: AV's will hurt insurers

    If autonomous vehicles prove to be safer than regular cars, insurance costs will plummet, and by the time roads are filled with self-driving cars, insurers like Geico will have taken a serious hit, the Berkshire Hathaway chief said. Berkshire Hathaway Homestate Companies offers commercial auto insurance.

    "If they're safer, there's less in the way of insurance costs, [and] that brings down premium buy significantly," the investment guru said.

    http://www.cnbc.com/2017/02/27/buffe...-industry.html

    He does not think this will happen quickly, just that it will happen.
    2011 Cyber Gray, Std Wheels, Black Leather/White Console, Bose, Nav, Htd Seats, Park Assist. Picked up May 2011
    B3320
    Best All Electric Miles: 54.2
    Lifetime: 84,576 miles, 135 MPG, Remaining Oil Life 74%
    Typical Commute: 60 miles
    30 day Stats: 1366 miles, 125
    MPG, 65% Electric, 33% gas, Saved 48 gal., 27 kW-hr/100 miles
    Hidden Content Free Volt Manual here: Hidden Content

  2. #2
    Join Date
    Jun 2015
    Location
    South Bay of SoCal
    Posts
    2,898

    Default

    Yup and at the same time, vehicle ownership is declining as car/ride sharing is increasing...That is shifting auto insurance from an individual to a corporation...
    Former MY17 LT w/ used homelink mirror owner
    Dear GM, thanks for offering ACC on the Volt, now let's give it 7.2kW charging & a garage door opener...

  3. #3
    Join Date
    Jun 2008
    Location
    Northern California
    Posts
    778

    Default

    I think it would make the car insurers more profitable if we don't complain about the increased safety... Too early to tell yet if it indeed it will increase safety especially with many dorks around unwilling to embrace new technology even after they die.

  4. Remove Advertisements
    GM-Volt.com
    Advertisements
     

  5.  

    Advertisement

  6. #4
    Join Date
    Dec 2015
    Location
    Virginia
    Posts
    1,509

    Default

    and some people will still want to "manual drive" and it will COST THEM A FORTUNE in insurance to do so.

    I have no doubt that something will come up with A/V that people will feel the need to insure against.
    A study in opposites
    1997 Jeep Cherokee
    2013 Chevy Volt "OHM-RIDE"

  7. #5
    Join Date
    Aug 2009
    Location
    Texas - DFW
    Posts
    4,371

    Default

    An AV car costs around double what a standard EV costs and around 4x what a normal ICE car costs. Insurance is not only based on safety but costs to repair as well. Remember 5mph bumpers? Huge expense if you hit something at 6mph.
    Driving a show car. Every day!


    Don't Pokemon and drive!

    ---—------—------—------—---
    2014 Crystal Red ELR (REDD) code R w/Cashmere interior
    L2 - GE WattStation
    iOS 10.2.1 on iPhone 6. MyCadillac App version 3.5.0
    Hidden Content
    Hidden Content

  8. #6
    Join Date
    Jan 2011
    Location
    Maine
    Posts
    3,239

    Default

    Quote Originally Posted by Dutch View Post
    and some people will still want to "manual drive" and it will COST THEM A FORTUNE in insurance to do so.

    I have no doubt that something will come up with A/V that people will feel the need to insure against.
    Think of it like herd immunity. If all the autonomous cars are good at avoiding idiots, the idiots will have fewer collisions.

    But the biggest thing would be that (assuming reasonable system cost) autonomous vehicles would provide much cheaper flexible mobility, and that would take uninsured, under-insured and bad drivers out of the drivers' seat. It would move them into large taxi companies that would be able to self-insure.

    And of course cheap flexible mobility via autonomous taxis would make government more willing to make it harder for people to obtain licenses and to remove licenses from offenders.
    Last edited by ItsNotAboutTheMoney; 3 Weeks Ago at 04:09 PM.

  9. #7
    Join Date
    Jan 2011
    Location
    Illinois
    Posts
    15,117

    Default

    If (or when) AV's are proven to be significantly safer by the number crunchers, insurance on people who drive themselves may rise as they will be riskier than AV's. After all, insurance companies will be looking for any way to offset reduced revenue. At some point, when AV is considered extremely safe and reliable, perhaps only the very wealthy will be able to afford to drive manually.

    But I expect hacking and or software glitches will mar the rosy scenario and delay that day.
    2011 Cyber Gray, Std Wheels, Black Leather/White Console, Bose, Nav, Htd Seats, Park Assist. Picked up May 2011
    B3320
    Best All Electric Miles: 54.2
    Lifetime: 84,576 miles, 135 MPG, Remaining Oil Life 74%
    Typical Commute: 60 miles
    30 day Stats: 1366 miles, 125
    MPG, 65% Electric, 33% gas, Saved 48 gal., 27 kW-hr/100 miles
    Hidden Content Free Volt Manual here: Hidden Content

  10. #8
    Join Date
    Jan 2017
    Location
    arizona
    Posts
    140

    Default

    When I watch the AV's out on the road, two things come to mind. First is the space shuttle and all of the billions of dollars of research and the redundant safety systems. I seem to recall that not one of the first 100 space shuttle flights launched as scheduled. I remember visiting the launch site to see one go up and then was told a computer program shut down the launch with less than a minute on the clock. Not to mention two of the flights that ended in explosion and disintegration during re-entry. My point being, NASA can request another few billion dollars to fix the problem and try again. When AV's take out a family, the lawyers will come from far and wide to cash in. How deep are the pockets of AV makers?

    The second thing that crossed my mind was what I see each and every day living and driving in a big city. Aggressive drivers. If you are driving a mere 10mph over the posted limit, they will run you off the road. Every morning we watch the news to see where all the crashes are and what parts of the interstate are backed up. I'm guessing it's that 25% of drivers that are compulsive speeders, who cut in and out of traffic. They even drive like that on Sundays. They can't help themselves. The most noticeable are the men in their lifted 4x4 trucks. Part of that macho look is driving around everyone else, no matter if it is rush hour. these types of people will not get into an AV if it drives the speed limit. Not ever. They would rather drive uninsured than drive the speed limit. It is a lifestyle choice for them. The AV's will one day be met with a hail of gun fire from these angry drivers.

    I have not read a lot about AV's just yet. I try to picture them on snow and ice and driving through thunderstorms, and reacting to blow-outs or being side-swiped by another vehicle. I really believe lawyers are going to make a comfortable living filing lawsuits against owners and makers of AV's when things don't go as planned.

+ Reply to Thread

Quick Reply Quick Reply

  • Decrease Size
    Increase Size
  • Remove Text Formatting
  • Insert LinkInsert ImageInsert Video
  • Wrap [QUOTE] tags around selected text

Similar Threads

  1. Auto insurers that provide discounts for Lane Keep, etc.?
    By heyeph in forum Generation 2 Volt (2016-2020)
    Replies: 11
    Last Post: 10-20-2015, 06:04 PM
  2. Buffett increasing position in GM stock
    By Loboc in forum Politics, Finance, and Environment
    Replies: 0
    Last Post: 08-16-2013, 10:51 AM
  3. Buffett Buys GM, Bets it Will Go Up
    By Steverino in forum General Motors and General Automotive Topics
    Replies: 7
    Last Post: 05-16-2012, 01:28 PM
  4. Forbes - Warren Buffett Beware: Beijing Trashes Its "Garbage" Green Cars
    By Jason M. Hendler in forum Politics, Finance, and Environment
    Replies: 2
    Last Post: 12-16-2011, 03:32 PM
  5. Medical Insurers offer some concessions
    By omnimoeish in forum Politics, Finance, and Environment
    Replies: 4
    Last Post: 03-27-2009, 11:39 AM

Tags for this Thread

Bookmarks

Posting Permissions

  • You may post new threads
  • You may post replies
  • You may not post attachments
  • You may not edit your posts