Goldman Sachs predicts autonomous cars will slash insurance costs by 50%—but could create headaches in figuring out fault in accidents

Students exit a Waymo car stopped on the street. (Credit: Smith Collection/Gado—Getty Images)

• As more Waymos and self-driving Teslas hit U.S. roads, insurance companies must reassess how to cover these autonomous vehicles. Goldman Sachs predicts insurance costs will be cut in half as there are fewer human-caused accidents. But liability may switch to car manufacturers, whose tech may malfunction or experience security breaches.

More autonomous vehicles are hitting the road, and it’s leading to a reassessment of insurance costs and coverage, as well as who is to blame for fender benders and crashes. The $432 billion insurance industry must adapt to more self-driving cars ostensibly leading to fewer human-caused accidents, according to a Goldman Sachs analyst note sent to investors on Monday.