Auto Insurance Adapts to AVs and Tech Advances

Car insurance in the U.S. has significantly evolved since the first policy was issued in 1897, progressing from basic liability coverage to products that address a broader range of risks as technology and consumer needs have changed. The industry's growth accelerated in the early 20th century with the rise of major insurers and the advent of mandatory insurance requirements. Today, technological advances such as telematics and online services continue to drive innovation in the sector. The emergence of autonomous vehicles is prompting insurers to reconsider risk models, as AVs introduce new types of risk and involve diverse stakeholders. Insurers that entered the AV market early are positioned to benefit as deployments scale and more data becomes available. The market is also shifting focus to retaining valuable customers in a competitive environment, with customer satisfaction remaining a key challenge.