The world of self-driving cars and trucks is now upon us. Among other expected impacts, the gradual transition from driver-controlled to semi-autonomous to fully-autonomous vehicles will mean significant changes in insurance programs and liability protections for companies in the transportation industry. Currently, 93% of road traffic accidents are caused by human error. Thus, removing the human element from driving is ultimately expected to reduce accidents and the need for personal liability insurance.

According to the Insurance Institute for Highway Safety, there will be 3.5 million autonomous and semi-autonomous vehicles on the road in the United States by 2025, and 4.5 million by 2030. The trucking industry, which moves more than 70 percent of domestic freight (measured by weight) and employs more than 3.5 million drivers, is poised to be a large-scale early-adopter of autonomous vehicle technology. The sector’s economic gains attributable to this technology could reach $100-500 billion per year by 2025, and trucking companies are taking notice. For example, one company already has replaced 20 percent of its fleet with semi-autonomous trucks and plans to double that number in 2018.