Many of us are looking forward to the future and the amazing technological advances right on the horizon. Of all these advancements that have us excited, driverless cars seem to be at the top of most people's wishlist. No more simply a thing of science fiction, fleets of driverless cars are actually hitting the roadways of the world. One group of people that are less than excited for this future are insurance companies. When these new driverless cars hit the market sometime in the near future, many insurance companies and auto industry experts are worrying about the decline of the auto insurance industry. While it is likely that driverless cars will require some sort of liability or auto insurance comparison since accidents can always happen, it would be surprising if these policies were even half as diverse or varied as today's policies. With simpler and fewer choices on the market, a dip in revenue for insurance companies seem inevitable. Accidents Will Always HappenEven more worrisome is the rarity with which accidents are likely to occur. Insurance companies are based in the premise that accidents will happen with a certain amount regularity. When the driver is eliminated from the scenario, the chance for accidents is greatly reduced. This will definitely decrease profits to insurance companies. Experts predict this profit dip will not hit the insurers right away, though. At first, we will likely see a scenario where premiums stay steady at the current prices while accident occurrence drops. Fewer payouts for claims means more money for insurance companies. Eventually, many policyholders will drop their policies and new customers will request a car insurance quote much less often and the decline of the commercial insurance industry will begin. It isn't only insurance companies that could be hit by the driverless car movement. Other businesses see a great deal of money being made from the regularity of accidents. It makes sense that businesses like auto repair shops could also see a dip in profits, but hospitals would make less money off of auto accidents and police and governments would see fewer fines and less police presence on the roads. Getting the Technology RightNow while this may seem like a very scary doomsday scenario, there are some bright spots in this whole thing. The first being that driverless cars are still many years away from being the dominate force in the auto industry. There are many factors that must be factored into the equation before driverless cars outsell traditional vehicles. The technology is still a little ways off. Even when the technology does become available, government bodies are going to have to deal with regulatory issues, which could add many more years. Then consumers have to trust the technology. This could take a little while as many drivers simply will not feel safe not being control of their vehicle. Once all of the details are sorted out and the public is on board with the driverless car revolution, the bright spots do not end. Experts predict while the regularity of car accidents will dwindle, the severity of these accidents will increase. This is not necessarily in reference to human injury, but simply a matter of cost. Technology is expensive to repair and replace. The cost of sensors, cameras and other technologies necessary to make driverless cars functional will likely keep repair costs closer to today's levels.The Threat of Advancement The reality of the situation, while probably not as dire as some predict, can still cause an upheaval in the insurance industry. The same sort of transition has companies from the top to the bottom due to one simple thing - lack of preparation. In the past, companies that did not take the threat of advancing technologies seriously have found themselves out of jobs at the end of the day. This has been seen most recently in the area of photography. Many traditional film processing businesses and even some top camera manufacturers did not sit up and take notice of digital camera technology as it advanced through the '80s. When the technology suddenly advanced to the norm, these businesses were ill prepared for the inevitable business model change that was occurring. While the photography industry was never decimated, it certainly did see a change in the landscape of the industry.The bottom line is that insurance companies and other 'accident-based' businesses should begin preparations for a driverless future, and some already are. Those that are caught snoozing now will likely face the consequences when the technology meets reality.