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Autonomous vehicles
AbacusTech

Think your car insurance is too high? Self-driving cars could make you pay less

China’s Changan Automobile will provide insurance for owners of self-parking cars

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Changan Automobile's CS75 SUV displayed at a car show in Beijing in 2016. Some models from the series are equipped with self-parking. (Picture: Kim Kyung-Hoon/Reuters)
Karen Chiu
This article originally appeared on ABACUS

Your car insurance exists to protect you from having to pay up after an accident. But what if one day human drivers are no longer behind the wheel -- would you need to worry about premiums at all?

The answer could come sooner than you think. It’s true that the driverless cars we’ve dreamed about for decades still have a long way to go. Yet today automakers have already incorporated at least some forms of autonomy into cars.

Take self-parking, for instance. The technology, adopted by the likes of BMW and Tesla, helps drivers breeze into parallel parking spots by taking over the steering wheel.

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Despite the convenience, though, it seems like auto parking still isn’t widely used. One reason, according to China’s Changan Automobile, is because drivers don’t trust the computer enough to do the job for them. What happens if there’s a mishap? Am I responsible for what’s out of my control?

To change that, Changan says it’s going to start offering free insurance to any driver who uses the self-parking function on its vehicles, according to Chinese media. If an accident occurs and Changan determines it’s the fault of the computer valet, the insurer will pay up to about US$57,800 for property loss or damage, and about US$21,700 for death or injuries.
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Changan Automobile's CS75 SUV displayed at a car show in Beijing in 2016. Some models from the series are equipped with self-parking. (Picture: Kim Kyung-Hoon/Reuters)
Changan Automobile's CS75 SUV displayed at a car show in Beijing in 2016. Some models from the series are equipped with self-parking. (Picture: Kim Kyung-Hoon/Reuters)
From Tesla’s Elon Musk to Baidu’s Robin Li, proponents of autonomous driving have long argued that driverless cars will make our roads safer. By replacing careless human drivers with smarter algorithms, they say, there’s less of a chance that things will go wrong.
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