Self-Driving Cars Prove a New Animal for Insurance

Discerning who's at fault when A.I. collides with A.I.

Here’s a brain-teaser: If two self-driving cars collide, who has to pay for repairs?

The answer isn’t necessarily as simple as determining who hit whom, a common factor in determining liability when human drivers are behind the wheel.

Theoretically, if computers are controlling both vehicles, they’re making optimum decisions in every situation and following all applicable traffic laws, a conundrum that might eventually upend the existing auto-insurance system, the largest piece of the U.S. property and casualty market, with about $230 billion in premiums.

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