Driverless car insurance rules reach parliament

The government has formally introduced to parliament the Vehicle Technology and Aviation Bill, the legislation that sets out the insurance framework for self-driving cars in the UK.

 

The bill requires a single insurance product for driverless vehicles that will cover both the motorist when they are driving and the car when it is in automated mode. This means innocent victims involved in a collision with a self-driving vehicle will have quick and easy access to compensation.

 

“Automated vehicles have the potential to transform our roads in the future and make them even safer and easier to use, as well as promising new mobility for those who cannot drive,” said Transport Secretary Chris Grayling.

 

“But we must ensure the public is protected in the event of an incident and today we are introducing the framework to allow insurance for these new technologies,” he went on saying.

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The bill allows the driver to hand full control and responsibility to the self-driving vehicle when automated mode is turned on. Car owners will be liable if they have made unauthorised changes to the vehicle’s software or if they have failed to install an update that their policy requires them to.

 

Under the proposed law, insurers could still try to recover costs from the manufacturers of the automated vehicles. The Department for Transport will determine which cars will be classified as self-driving and become subject to the requirements.

 

Insurance companies have welcomed the government’s proposed rules for driverless cars, which are expected to affect insurers’ earnings.

 

“This is a positive step forward that provides clarity to insurers to ensure we design our products appropriately,” said David Williams, head of underwriting at AXA UK.

 

“The vast majority of accidents are caused by human error and we see automated vehicles having a massive impact, reducing the number and severity of accidents,” Williams added. “As well as making our roads safer, insurance premiums are based on the cost of claims and therefore we expect substantially reduced premiums to follow.”

 

Earlier this month, the Association of British Insurers (ABI) said the industry is “100% committed” to supporting the development of automated vehicles.

 

“We want to keep insurance as straightforward as possible, which is why insurers proposed the simple approach which the Government is now taking forward,” said Ben Howarth, ABI senior policy adviser for motor and liability.