Driverless Car Insurance Becomes a Reality

16 Jun 2016 12:48 PM

UK's first driverless car insurance policy launched by Adrian Flux.

Insurer Adrian Flux has launched the UK’s first insurance policy for autonomous cars, covering drivers for accidents or damages where the fault lies with automated features.

The policy covers current features, including assisted braking and automated parking, as well as fully-automated vehicles, which the majority of drivers are still not comfortable with. It also covers damages caused by hacking, which has been a priority in autonomous vehicle testing.

Adrian Flux have followed the principles of the Modern Transport Bill, which will extend compulsory cover to accidents where the car itself is at fault. The bill followed the identification of autonomous vehicles as a government priority in the Queen’s speech.

This policy coincides with a number of advances currently being made towards full automation. Examples include Tesla’s Autopilot software, and Nissan Motor’s Infiniti Q50 technology, both of which allow drivers to let go of the wheel at certain times.

The insurer insists that “the driver will always need to be able to take control of the car at any point in their journey”, meaning that sleeping, intoxication, or being otherwise fully occupied would make the driver at fault for damages.

The policy covers against:

• Loss or damage to your car caused by hacking or attempted hacking of its operating system or other software
• Updates and patches to your car’s operating system, firewall, and mapping and navigation systems that have not been successfully installed within 24 hours of you being notified by the manufacturer
• Satellite failure or outages that affect your car’s navigation systems
• Failure of the manufacturer’s software or failure of any other authorised in-car software
• Loss or damage caused by failing when able to use manual override to avoid an accident in the event of a software or mechanical failure

Regardless of the wider range of risks covered by these new additions, the policy may well be lower in cost than other insurance policies. Commentators from the automotive and insurance industries feel that automation will lead to a reduction in the number of accidents. Tesla expect a 50% reduction in accidents with the use of the first-wave autopilot feature already installed in their Model S.

techUK and SmarterUK continue to look at what the future holds for Connected and Autonomous Vehicles (CAVs), and recently held an event investigating the legal, technological, and legislative setting for security within the connected car.