INSURANCE
88 %
Reduction in property damage claims for Waymo vehicles vs. human drivers
“ Autonomy has the potential to significantly reduce accident frequency longer-term and reshape the underlying claim cost distribution and legal liability for accidents,” wrote Goldman Sachs analysts in a recent client note. The investment bank forecasts that per-mile auto insurance costs could plummet by over 50 % by 2040, from approximately US $ 0.50 in 2025 to around US $ 0.23.
The Swiss Re study provides concrete evidence for this shift. Across 25.3 million miles, the Waymo Driver was involved in just nine property damage claims and two bodily injury claims. For the same distance, human drivers would be expected to have 78 property damage and 26 bodily injury claims.
When a vehicle is controlled by an algorithm, the question of fault in an accident becomes profoundly more complex. Liability is expected to migrate from the individual to the manufacturer, the software developer, and potentially a host of other entities involved in the vehicle’ s operation, such as network providers and sensor manufacturers.
“ The underlying protection needed for autonomous vehicles could shift the insurance pool towards product liability and cyber coverage – a different underlying risk profile than what auto insurers cover today,” the Goldman Sachs report continues.
However, Barry warns that vehicle owners won’ t be entirely absolved of responsibility:“ Brokers should ensure their customers understand the capability of the car they wish to insure, and what responsibilities rest
124 August 2025