The rise of self-driving cars, which has been pioneered in many ways by the electric car manufacturer Tesla, is a fascinating area of the law that is developing at a rapid pace. Tesla’s CEO, Elon Musk, as long claimed that self-driving cars are safer than those operated by humans. Others, who have been involved in accidents when Tesla’s autopilot feature has allegedly malfunctioned, are not so sure. In some ways, Musk and Tesla are now putting their money where their mouth is, and have announced they will be rolling out insurance policies that take advantage of what they claim are safer driving behaviors.
Insurance is an issue that has plagued Tesla owners in the short history of the company, as they are consistently some of the most expensive vehicles on the road to insure. Musk apparently believes that the vehicles are safer than insurance underwriters give them credit for, and believes that Tesla can lower insurance premiums by issuing their own policies.
One feature that drives the insurance market, and Musk believes should lower premiums is the autopilot, or self-driving feature. Over the past few years, there has been some misunderstanding as to exactly what autopilot technology is. Quite simply, autopilot technology allows the computers in a vehicle to operate the vehicle with minimal input from the driver. Vehicle are able to stop and go on their own, maintain a safe distance from vehicles in front of them, change lanes, and exit roadways.