[coryfklein]

Insurance for human drivers stays the same. If anything, it goes down, because the more Waymo-level autonomous vehicles on the road, the safer it is overall.

Insurance isn't a zero sum game, where "less insurance spent on autonomous vehicles" means the insurance companies have to make up for it somewhere else.

In a way, "car driving getting safer overall" isn't great for car insurers, because they make money financing auto risk, and if there is 50% less auto risk then they have less addressable market.

[fragmede]

Insurance is, however, a for profit corporation, out to maximize profits, so they'll charge both groups a premium, and then add a service fee on top of that.

[coryfklein]

Nothing about that changes with the introduction of autonomous vehicles though, and it's a very open and highly competitive market. It is extremely easy to switch your auto insurance provider, and anyone who can pay some actuaries can start up a new business. (Though few do, because there isn't a huge margin to take away from the industry as it is.)

[cloverich]

And when they post the obscene margins as a result of doing this, other insures can come in and undercut them. That's a key ingredient to making insurance work well. Its also why "insurance" doesn't work for healthcare.

[valval]

Insurance prices aren’t made up, they’re calculated based on probable costs.