The Hidden Cost of Self-Driving Cars

Industry experts suggest we’ll all be riding in self-driving cars one day, and while it’s suggested motorists will eventually pay lower insurance premiums due to the resulting drop in accidents caused by human error, we could all expect to pay higher taxes in the process. That’s because local law enforcement will lose significant revenue by issuing fewer moving violations that we assume autonomous vehicles will inherently avoid, according to a recent report issued by the Brookings Institution. So how might states and communities recoup the lost cash? To start, expect increased fees for vehicle registration and licensing, along with higher gas/energy taxes and perhaps additional taxes for repairs and other car-related costs. We’ll likely see a rise in the number of toll roads and bridges and their per-mile/crossing rates. And autonomous-vehicle owners will probably still be required obtain and renew drivers’ licenses, if only to collect the associated fees, which could become quite steep.-