Government framework for insurance for driverless cars expected this week

The government is expected to set out a framework for insurance for driverless cars this week.

The move has been welcomed by insurers as the framework will enable them to design and tailor appropriate products.  In addition, they were keen to have a single insurance policy as opposed to separate policies to cover the driver and the technology.

The Department for Transport has said that it recommends a 2-in-1 single insurance policy which would cover a motorist when they are driving as well as a vehicle when it is in autonomous mode.

Chris Grayling, the Transport Secretary, said “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”.  He continued “We must ensure the public is protected in the event of an incident and this week we are introducing the framework to allow insurance for these new technologies”.

According to a report by The Telegraph, the government wants to obligate driverless car owners to have two-in-one cover in the hopes of avoiding confusion over insurance claims.  The proposed DfT rules mean full control and responsibility will be handed over from the motorist to the autonomous car as soon as it goes into driverless mode.

Insurance requirements for automated vehicles

The DfT has proposed amendments for the motor insurance framework to include automated vehicles. The amendments will require changes to legislation, however the government says it will change as little as possible in order to enable the market to develop the appropriate products for AVs.

The proposal is that an insurance company will cover both a driver’s use of a vehicle and the car’s AV technology. Having appropriate insurance will still be compulsory and the insurance would cover times when motorists are in control and when cars are in automated driving mode.