#365: How To Insure Autonomous Vehicles W/Steve Miller of Hub International

In the episode, Steve Miller explains how autonomous‑vehicle insurance began with a patchwork of human‑driver rates because actuarial data simply didn’t exist. When Drive AI approached regulators in 2015, the California DMV demanded million‑dollar coverage, yet no carrier had a product for driverless cars. Miller’s team leveraged relationships with underwriters, filed traditional auto rates, and added large surcharges to cover the unknowns. This early‑stage approach bought time for pilots, built a track record, and demonstrated that liability transfer still follows the same negligence principles that have governed auto insurance for a century.

As testing mileage grew, insurers shifted from crude rate‑inflation to data‑driven modeling. Miller highlights the blend of on‑road telemetry, crash reports, and increasingly sophisticated simulated scenarios that now feed actuarial engines. Sensors on AVs provide forensic evidence, allowing adjusters to pinpoint fault more accurately than conventional claims. The industry also began filing state‑specific rates that can vary by 30‑50 percent based on fleet size, operating domain, and safety‑driver protocols. Transparency—detailing vehicle values, operating hours, geographic exposure, and driver‑training records—has become a non‑negotiable prerequisite for securing coverage.

Looking forward, the conversation turns to software updates that effectively create a new “driver” with each release. Miller warns that insurers must develop real‑time data pipelines to reassess risk as algorithms evolve. Regulatory frameworks, such as the Build America 250 provisions, still lack explicit liability language, leaving insurers to rely on existing auto‑law precedents. Nonetheless, the market’s total addressable risk exceeds $1 trillion annually, with roughly 40 % tied to motor insurance. Companies that maintain open, collaborative relationships with carriers—providing continuous safety‑case documentation and rapid data sharing—will secure more favorable terms and help shape the next generation of AV insurance products.