Quote:
Originally Posted by ORIGIN M.
Hopefully because they are going up, like it or not. Only two US insurance companies made a profit last year due to such heavy losses.
Our newfound multitasking heavily distracted drivers have paved the way for a steady increase in premiums.
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I guess Autonomous driving is coming just in time huh. Matter of fact insurance rates should actually plummet as autonomous eventually starts to deploy in numbers as the safety rate for those cars will greatly exceed that of human drivers.
Unfortunately, this is also very bad for insurance companies as their rates will come down which means less revenue (but fewer claims). However most insurance co's don't always shoot for an underwriting profit. They look for free float of premiums to invest elsewhere (this is how Buffett crushed the markets with Geico's free and ever growing float). As revenues go down so will the free float to invest and they will make less money. Either way the underwriters today and tomorrow will be same as always and run at small loss, breakeven or small gain on the insurance part. It's the investment piece where all the hay is made
I'm glad to see the new 5's have fared this well though. I'm looking at the M550i to replace my F10 M5. Still waiting to drive one with adaptive suspension so I can compare it to my true M. If it doesn't hold up next to my M in that regard I'll have to wait for the new M5 which requires patience! I didn't realize they don't crash test the M's as pointed out above by another poster?