We note that the average price of a new car is reported at $33.7K USD in early 20162. This compares to less than $20K USD for a used car.
The Tesla is a well know vehicle offering an option for Autopilot Convenience Features. The Tesla currently offers 2 models (Model S and Model X), both with starting prices above the $50K USD price point at $53K USD and $85.5K USD respectively.
The optional Autopilot Convenience Features carry an additional cost of $3K USD.
However, the upcoming Tesla Model 3, slated to be available in late 2017, is expected to be priced around $35K, a price point within the affordable range of a fair share of car buyers.
Tesla cars of course offer much more innovations than autopilot features as they are primarily all electric vehicles and thus more expensive as a base model than conventional gasoline vehicles.
Reduced insurance premiums versus the additional cost of self-driving cars
Self-driving cars are touted as being key to reduce a large proportion of car accidents by reducing or eliminating those caused by human errors. This could potentially translate into lower insurance premiums to offset the cost of the new self-driving features in part or in full.
LYA asked respondents their willingness to buy a self- driving car if the added cost could be saved by a corresponding decrease in insurance costs over 3 years. More than 50% of respondents agreed with this affirmation as shown on Figure 2 with 16% even saying that the decrease in insurance premium did not have to over the full incremental cost of the car.