Insurance companies confused by new driver security technology

Photo: Volvo
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Insurance companies are not confident of all this new technology for driver safety, some consumer lawyer groups are angry at Tesla, BMW has batteries on the brain and more waiting for you in this The Morning Shift of Friday 26. July 201[ads1]9.

First Gives: A Changing Landscape

Many new cars today are available with a range of advanced driver assistance systems (ADAS), such as 360-degree cameras, automatic braking, roadway and adaptive cruise control. It's just the way of the future. These features are very attractive to buyers, and they are designed to make driving safer.

But insurance companies, which base their entire profit systems on accidents and collisions, could see these systems begin to affect the premiums, according to Reuters. From History:

Personal car insurance, although traditionally a low-margin business, provides the largest liquidity amount to the insurance companies, generating more than $ 244 billion in 2018 direct premiums in the United States alone, data from the National Association of Insurance Commissioners showed . Auto insurance is also seen as a way for insurance companies to sell other, more lucrative products to customers.

According to Swiss Re AG, the world's largest auto insurance company and mapping company, ADAS has the potential to reduce motor accident rates by up to 25%, and reduce global insurance premiums for fully ADAS-equipped cars by $ 20 billion by 2020. [19659013] Insurance Companies however, here in the United States says they do not have "sufficient data" to "validate the automotive industry's promise of security benefits from automated driving systems."

Which means that even if you have ADAS on your car, you probably won't get a premium discount soon. Insurance companies claim a lack of OEM data as to whether it measured the security of their functions, inconsistent standards, unpredictable consumer use, and more expensive repair bills as variables.

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The bit about sky-high repair bills is especially true. Since most sensors are in the car's bumpers and windshield, they are no longer cheap fixes and can reach thousands after a single chip or fender bender.

Allstate and Westfield Insurance both agreed:

"We will not accept the data and create any kind of false discounts for marketing at this time. We just want to make sure the rate reflects the risk that it entails, says Steve Armstrong, vice president of Allstate Corps Prize Department, one of America's largest insurance companies.

"We are stuck in a creepy way," said Jennifer St. John, national car claim manager in Westfield Insurance. "ADAS has proven to be real-world benefits, but there is not much commonality in what is out there."

But perhaps as more of these features become standard, insurance companies will be forced to rethink security for cars. However, I do not think there will be a change in all our prizes. What, do you think car insurance is going to be cheaper ? I want to live in the world you live in.

2. Equipment: Examine Autopilot, Please: Consumer Groups

Here are the players involved: Center for Autosafety and Consumer Guard (both consumer groups), the Federal Trade Commission, some state attorneys and Tesla. And it's about, you guessed it, Autopilot.

Yesterday, the two advocacy groups issued a statement in which they renewed the call to the FTC and Attorney General of California, New York, Florida, Michigan, Utah and Massachusetts to investigate "Dangerous Deceptive and Misleading Practices and Presentations by Tesla Motors" about "the safety and properties of the Autopilot feature."

They claim:

Center for Auto Safety and Consumer Watchdog warned that Tesla's representations of the Autopilot feature continue to violate Section 5 of the FTC Law, as well as similar governmental statutes, because they are substantially misleading and likely to mislead Consumers believe that their vehicles have self-propelled or autonomous capabilities. The letters show that Tesla's and Elon Musk's public statements about Autopilot mislead and lure consumers.

The agencies localized the recent crash that resulted in the death of a March Tesla driver in Florida, where Autopilot was allegedly found to be engaged.

I just want to say it again because I guess it must be said. Autopilot is not a self-running function. It is a very advanced driver assistance function. When you turn it on, you are not excused from paying attention to the road, and you should not remove your hands from the wheel.

We do not have self-driving cars yet. People must stop behaving as we do.

Third Equipment: More Batteries

When more and more electric cars and hybrids hit the road, the supply of batteries must follow. BMW plans to increase its battery production, according to Automotive News Europe.

It is a $ 10 million investment at the car manufacturer's Spartanburg plant in South Carolina, which will hopefully double the production capacity of lithium-ion battery packs. The new batteries will be used for the PHEV versions of the X5 and the upcoming X3, according to the outlet.

This is all part of BMW's plan to launch 25 electrified cars (half of which will be EVs) by 2023. [19659010] If they are something like the amazing i8, then I'm for it.

Fourth Giving: China Car Sales Still Not Looking Good

As the world's largest car market, it seemed that almost all automakers turned to China. Last year, however, Chinese car sales fell for the first time in two decades, and it doesn't seem to ring again at any time.

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China's Association of Automobile Manufacturers, the country's largest automotive association, predicts that car sales will celebrate five percent year on year to 26.7 million cars this year, according to Reuters. From the story:

This compares with the previous forecast for zero growth and last year's decline of 2.8%. Sales of new energy vehicles are still expected to increase, but at a slower pace to 1.5 million, down from the previous forecast of 1.6 million, CAAM said.

The more pessimistic forecasts come after a multitude of downgrades from industry experts and criticisms that rapid tracking of new emission rules in China have been poorly managed, and affect sales.

Nor has the ongoing commercial war made any favors. It apparently affected consumer confidence.

We are on our way to a recession child. Get up.

5th Gear: A Revamped Car You Probably forgot updates, as found in the company's press release:

  • Standard LED floodlights
  • Updated lower front and rear face
  • Higher resolution internal display
  • Rear pedestrian warning
  • Standard heated front seats
  • 2.0-liter four-cylinder turbo, now standard engine

Don't go out and buy one at a time, now.

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Read more Read [19659053] Neutral: Do you think car insurance will become obsolete?

Let's play a fun and totally hypothetical game. Say we finally got completely autonomous cars. Vehicle-to-vehicle and car-to-infrastructure communications and all that. No one runs anywhere again, everything is automated. Will there be any need for accident insurance anymore?

Sure, do you need it if a tree falls on your car, but if all cars are autonomous and "talk" to each other, would there be no random collisions? Thus, making accident insurance obsolete?

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