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Auto insurance to see 40% premium cuts by 2050

September 14th, 2016  |  Auto

A new report by insurance giant Aon has predicted the potential impact self-driving cars will have on the auto insurance business and it looks good — for consumers that is.

CTV News reports that by 2035 there will likely be enough autonomous cars on the road to cause premiums to drop 20%. By 2050 Aon expects premiums to be 40% lower.

The drop comes as auto liability shifts from the hands of the individual owners to the manufacturer. The data, if accurate highlights an upcoming problem for many insurers who rely on auto insurance as their core product. While personal auto insurance will likely still be an important product for protection against weather or theft, personal insurers may have to turn their focus to another product as their core line, such as home insurance.

Widespread adoption of autonomous technology still has a long way to go in terms of both technological development, regulation, and even public opinion. However things are slowly changing as the public warms up to the idea of a car driving them around.