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This shift could drastically cut expenses that drivers currently shoulder, such as depreciation, maintenance, fuel, insurance, and the time they spend parking. The question remains: can autonomous vehicles (AVs) truly be profitable, or is this just hype?
The Insurance and Safety Debate
A major hurdle for autonomous vehicles is their insurance costs. Critics emphasize that accidents happen, citing incidents like Tesla’s self-driving cars hitting cyclists. The narrative that autonomous vehicles should have fewer accidents and therefore lower insurance liabilities raises questions because real-world incidents still occur. However, proponents counter with data suggesting that AVs are significantly safer than human-driven cars.