It's Not Just About the Auto Pilot

Much is being written about electric cars these days.  

Perhaps the best known of this category is Tesla.  Elon Musk is one of the category's strongest and best known advocates.  Having seen him speak about a year ago about the technology being put into his Tesla cars, I have no doubt he is pushing the envelope...in a good way.

One of the features built into his cars, and others like it, is the "auto-pilot" features.  Harkening back to the Jetsons, this feature lets cars navigate the roads themselves.

This blog is not about how that will work.  That is a future column.  No, this blog is about how one technology, a self-driving car, may be a major disruptor...just not in the way you think.

Think about this.   A major point of driverless cars is supposedly fewer accidents.  Work with me here and let's say that is exactly the outcome.  We all have fewer accidents.  Who stands to be disrupted by that?  A major segment that will be disrupted are insurance companies.  Fewer accidents means lower premiums.  And lower premiums means insurance companies will have a smaller float pool to invest.