Driverless cars picking up speed

Driverless car tech is gaining speed and the UK autonomous vehicle market is estimated to reach £62bn by 2030, and insurers need to be prepared for this transport revolution.

Over the summer the UK government stated that driverless cars will be allowed on public roads from the beginning of 2020. The US, Japan and Germany are among the countries who have already trialled driverless cars, raising the issue of driverless vehicle liability and business insurance.

Greater Manchester-based startup Zoom have launched the UK’s first car insurance for electric cars, specifically designed to add value to organisations who choose ultra-low emission vehicles. Zoom founder and CEO Greg Fairbotham said: “During our journey into electric mobility, we identified through speaking to people that insurance was behind the curve when it came to EVs, so we set about improving the customer experience and incentivising people to choose better vehicles through including real green benefits.”

The demand is high and the technology is available, but what will car insurance look like in a world where accidents are greatly reduced? Insurance policies will change as we move towards full automation, both in terms of the way premiums are set and in the way in which liability is established, with product liability taking on increasing importance.

This rapid growth of autonomous vehicles will involve a major shift, not only in our driving habits and patterns, but in terms of insurance of vehicles. Automated cars bring up new challenges for insurers, including fears of falling premium rates and a substantial volume of business.

The Automated and Electric Vehicles Act maintains that insurers will have liability for death, personal injury and property damage as a result of an accident caused by an autonomous vehicle. Experts predict that self-driving vehicles could be the norm by the 2040s, and over the next decade the technology is set to prevent 47,000 serious accidents and save 3,900 lives.

    Share Story:

Recent Stories