Current insurance laws will see an overhaul which will pave the way for autonomous vehicles to be active on UK roads within the next 4 years.
The question of who would be held liable for an accident involving a self-driving car has always raised concerns. The new law will rule that all insurance policies must cover injuries to all parties involved in an accident where an autonomous vehicle is involved.
According to The Guardian Secretary of State of Transport, Chris Grayling, will address insurers telling them :
"We are creating a new compulsory insurance framework that covers the use of automated vehicles and when the driver has legitimately handed control to the vehicle. This will ensure that victims have quick and easy access to compensation"
Chris Grayling has claimed driverless cars will be on the roads and operating by 2021.
Insurance companies have urged the government to push through the new laws as soon as possible, with semi automated vehicles already on the streets, it's important to clarify to consumers what their insurance policy actually covers.
Senior policy adviser at the Association of British Insurers, Ben Howard, said:
"People could wrongly think their vehicles can be left alone to manage a journey independently. Insurers want to see manufacturers being absolutely clear about how they describe what their vehicle can do"
Fully autonomous vehicles are the main focus of many of the big players within the ride-hailing industry. This new law will help pave their way onto UK roads.