"Self-driving cars will lead to dramatically fewer accidents (factor 10). This will shrink the market for the car insurance industry. Who is responsible for any remaining accidents is a great question," said Selman. "We are already seeing car companies (Volvo and Tesla) considering picking up the cost of any accidents caused by their cars. As long as the cars can be made safe enough, this will be cost effective. (Note that 90 per cent of current accidents are due to human error.) Self-driving cars will stay alert 100 per cent of the time and can look around them 360 degrees in real-time about 50 to 100 metres out."Vardi also considered car manufacturers the most likely candidates to take on the risk.
"The automation of driving is likely to reduce accident rates dramatically, reducing life, limb, and property damage. Car manufacturers will have to assume responsibility for accidents caused by machine malfunction. The car insurance business will shrivel away. Lawyers and hospitals will also lose the very significant income they receive now from the car-accident business," he said. Read more: Revealed: Our three biggest fears about driverless cars Vardi said the impact of the driverless car on the world is likely to be just as great as the invention of the car.
"The first automobiles were called "horse-less carriages", later abbreviated as "cars". People thought that cars would be like carriages, only without horses. Ultimately, cars have had a huge societal impact, shaping the geography of the US, for example. Driver-less cars are like to have an equally profound impact on society."Vardi also warned that the wider issue of machines taking over the work of humans in the coming years is something that should be addressed now, rather than in years to come, when it comes to public awareness and public policy. “What will humans do if machines can do almost any human job may be one of the most profound questions that humanity ever faced," he said. "How we restructure our economic life in the post-work era is likely to be on of the biggest human challenge of the 21st century."