The Role of Insurance Companies in the Self-Driving Car Era: Your Questions Answered

As self-driving cars move from science fiction to reality, many drivers are wondering how insurance will work in this brave new world. The UK’s Automated and Electric Vehicles Act 2018 has set out clear guidelines for insurance in the age of autonomous vehicles, and here’s what you need to know.

Who’s Responsible When Things Go Wrong?

The good news is that the insurance process for automated vehicles has been designed to be straightforward for consumers. If you’re involved in an accident with a self-driving car, you won’t need to worry about proving whether the car’s technology or the human driver was at fault. The insurer will pay out either way.

Think of it like this: just as your current car insurance covers both your actions as a driver and mechanical failures, insurance for self-driving cars will cover both human intervention and the car’s autonomous systems. The key difference is that insurers may later recover costs from manufacturers if the technology was at fault.

What Counts as a Self-Driving Car?

Not every car with driver assistance features qualifies as “automated.” The Secretary of State maintains an official list of vehicles that meet the criteria for true self-driving capability. This list ensures clarity about which vehicles fall under these special insurance provisions.

As an analogy, it’s similar to how not every bicycle with a motor counts as an electric bike under UK law—there are specific criteria that must be met.

What’s Covered?

The insurance covers:

• Death or personal injury
• Property damage
• Accidents caused by vehicles when driving themselves
• Accidents caused by cars that have been hacked

However, there are some exclusions. For example, if you make unauthorised modifications to the car’s software or fail to install important safety updates that you knew about, your coverage could be affected.

Will Insurance Cost More?

While it’s too early to know exact costs since fully autonomous vehicles aren’t yet widely available on UK roads, the insurance industry expects that self-driving cars will eventually lead to fewer accidents. According to the Act’s explanatory notes, this could ultimately result in lower premiums for consumers.

What About Non-Autonomous Cars?

Traditional cars will continue to be insured as they are now. The new rules simply add a layer of protection specifically for automated vehicles. Think of it as similar to how electric cars required new insurance considerations when they first appeared but didn’t change how conventional cars were insured.

What If I Don’t Want to Use Self-Driving Features?

You’re free to drive your automated vehicle manually, but it’s worth noting that you must still have insurance that covers the vehicle’s autonomous capabilities, even if you don’t use them. This ensures comprehensive coverage regardless of whether the car was self-driving at the time of an incident.

The Future of Car Insurance

The UK’s approach to insuring self-driving cars has been designed to be future-proof while protecting consumers. The legislation ensures that victims of accidents involving autonomous vehicles will be properly compensated while also providing clarity for insurers and manufacturers about where liability lies.

Remember, these rules only apply to vehicles officially listed as automated by the Secretary of State.

This clear framework puts the UK at the forefront of preparing for autonomous vehicles, ensuring that as this technology becomes more common, both drivers and pedestrians will be protected by comprehensive insurance coverage.