Self-driving cars could dramatically change the auto-insurance industry

As the driverless car gets closer to reality, so too does the dilemma of how to insure the car and its owner. The auto insurance industry faces upheaval in the next 25 years as the migration to autonomous safety features -- and ultimately a self-driving car -- shifts more of a car's accident risk from the driver to the vehicle, analysts said. The number of accidents is expected to drop sharply because currently more than 90% of accidents are caused by driver error. The U.S. market for personal auto insurance policies, which currently generates 200 billion in premiums a year, could shrink substantially, some experts predict. "There are going to be dramatic changes," said Joe Schneider, a managing director at KPMG who's part of the accounting firm's task force studying the issue.