Of all the major technological breakthroughs on the horizon, self-driving cars seems to be one of the most imminent and tangible. The advance promises a host of benefits, such as better gas mileage, safer roads, less traffic, and increased free time. The technology is already here and has been for some time, but its novelty and potential danger have slowed the consumer roll out. One of the major concerns put forth has been the issue of liability. Who carries the risk if the auto driving function causes an accident? The seemingly complex question actually has a simple solution, the consumer. We’ve already seen this borne out in self-parking cars where consumers are liable for accidents, though some companies promised to cover costs. But why would consumers want carry that risk? Because they get a self-driving car with far lower insurance rates. Insurers should have no problem with issuing coverage for individuals who have cars with self-driving features. Their goal is to identify probable losses and take a premium for carrying the risk. To do this they take into account various factors about the insured, such as age, driving history, location, and their car. Cars indicate certain things about the type of driver, but they also help predict expected liability due to safety features. Self-driving would be considered in much the same way they account for individual car safety features. This assumes that self-driving cars are actually safer, and all evidence points to that conclusion. With a far lower likelihood of an accident, insurers could then greatly reduce rates. There will be scare stories, as there already are, but anecdotes will not counter the realities of actuarial tables. So beyond the convenience of self driving, consumers will see an additional benefit from making the switch. This doesn’t preclude any liability from the car companies. Considering the pervasiveness of recalls in the automotive industry, there will be an entire new field of class action suits over defects in code. It is an added cost, but it does provide a negative incentive against a shoddy self-drive feature.

The infrastructure to roll out self-driving cars is in place, the technology is sufficiently advanced, and consumers are becoming more accustomed to the idea. The biggest hang up is the regulatory state, but even the Leviathan seems to be moving forward. The age of the self-driving car is here, the only question remaining is how long until you can’t buy a car without it.