General Insurance Article - AA comments on the plan for insuring driverless cars

AA comments on the governments plan on how insurance would work for driverless cars and agrees that compulsory insurance should be extended to driverless cars

 AA provided information to the government in its consultation.
 Michael Lloyd, the AA’s director of insurance said: “The proposals reflect the AA’s view that compulsory insurance should be extended to driverless cars.
 “This single insurer model will ensure that in the event of a collision, the not-at-fault party will be properly compensated in the way that motor insurance works now
 “Many questions remain to be resolved but this principle will allow for smooth handling of claims immediately after a collision and the question of liability can be sorted out in the background.
 “The fact remains that there are issues relating to where liability will ultimately lay, especially if there is some kind of fault relating to the software operating the vehicle.”
 The proposals permit insurers to develop policies in a competitive market and will form part of the planned-for Modern Transport Bill, which will set out regulations for driverless and automated vehicles.
 Says Lloyd: “The insurance market is changing very fast. Insurers and brokers need to be ready to meet the new challenges that automation presents.”
 The AA is already trialling a connected car system that monitors on-board systems as well as driver behaviours with 10,000 units installed in AA members’ vehicles.
 “This is the kind of technology that will form the basis of insurance in the future – whether cars are in driverless mode or being driven.
 “It’s offering some very exciting prospects that the AA is certainly well equipped to meet.”
 The AA quizzed its members on their willingness to accept driverless technology and it found that 65% enjoyed driving too much to consider a using a driverless car.
 “However the concept is becoming increasingly accepted. Although I believe the widespread use of driverless cars is at least a decade away, it offers tremendous opportunities for many people, not least those making long journeys and older drivers who still need to maintain their independence but would otherwise be forced to hang up their car keys.”

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