Tesla Model S1. The first “self-driving car” death occurred.
In May, a driver traveling in a Tesla Model S on autopilot mode—a SAE Level 2 automated vehicle—died when the car crashed into a tractor-trailer in Florida. Neither the autopilot or the driver distinguished a white tractor-trailer against the bright sky and the car collided with the vehicle, killing the driver Joshua Brown. This event was widely reported as the first self-driving car death. Of course, the Tesla Model S is not a fully autonomous self-driving car-those will not be available for years—and the drivers are still required to be prepared to take over the
Tesla when necessary. There were also reports that an earlier January crashoccurred in China. A Tesla Model S on autopilot mode collided with a street sweeper on the highway, instantly killing the driver. The May event was the first U.S. autonomous-related car death and both collisions raised concerns worldwide about self-driving vehicle safety and the need for increased regulation and public education.
The insurtech boom continued to grow. . This was momentous as it was the first marker of federal support for driverless cars. In the policy, the government asked states to avoid over-regulating autonomous cars as that may hinder their advancement and cause confusion across state lines. The policy encourages states to allow DOT to regulate performance alone and the guidelines also asked for input from car manufacturers and other organizations. Additionally, the guidelines suggest a process for autonomous vehicle regulation with a 15-point safety-assessment evaluation. While these guidelines may evolve in the next few years, they will pave the road ahead for self-driving car legislation.
Car insurance premiums increased an average of 6%. In 2016, auto insurance premiums increased at the fastest rate in nearly 13 years. A big rate hike occurred in April as claims rose 6%, though some states like Florida and California saw an even larger hike in rates, with some premiums increasing by as much as 10%. There were more claims filed and the size of those claims increased as well, causing insurers to raise rates to balance out payouts. The increase in claims is, in part, due to the country’s improved economy.
More Americans are driving, thanks to the rising employment rate and cheaper gasoline. However, people are also driving distracted and that is not helping to decrease the number of accidents on the roads. With the largest increase in traffic deaths since 2016, the car insurance premium rates will likely rise up again in 2017 to offset this year’s accident claims.
