Autonomous vehicles could lead to lower premiums: Moody’s

Policyholders could have lower auto fleet insurance premiums as autonomous and other intelligent technologies improve and there are fewer accidents, according to a Moody’s Investors Service report issued Wednesday.

“As advanced autonomous vehicles become prevalent, accident frequency is likely to fall precipitously over time, and could ultimately translate into significantly lower loss costs and premiums for auto insurers,” says the report on autonomous vehicles. “Profits are likely to also decline, since most insurers set profit targets as a percentage of premiums,” it said…

In a separate report on electric vehicles, Moody’s says these are more expensive to repair, and battery and electric cable placement make them more likely than internal combustion engine vehicles to be a total loss, even in minor collisions.