29 May 16
News

UK will reform car insurance to prepare for driverless cars

The UK will reform motor insurance to make sure driverless cars are covered, UK Roads Minister Andrew Jones announced. To that end, his department will consult with the insurance sector this summer. “Driverless cars are coming sooner than many expect”, Mr. Jones (pictured) said at Milton Keynes, the location of driverless car trials. “The UK is in a great position to lead their development”. 

Dismissing the notion that they would make car insurance unnecessary, Mr. Jones said that driverless cars would prompt a rethink of the industry: “Firstly, much of the insurance pricing data will become obsolete. Secondly, vast quantities of new kinds of data will become available, assessing not individual driver risk but vehicle behaviour and other factors. And thirdly, in a collision when in driverless mode, the vehicle will be at fault, not the driver”, he was quoted by Fleetworld.

The UK government will amend motor insurance provisions, but wants to give the industry the chance to lead the changes. “Compulsory motor insurance will be retained, but will be extended to cover product liability. Where the vehicle is at fault, the insurer will be able to seek reimbursement from the manufacturer. For affected individuals, the insurance process will feel much the same. They will have the benefit of fast and fair insurance compensation – just as they do today”.

Image: Carlton Reid, CC BY 2.0

Authored by: Frank Jacobs