"The future is here," or so stated Adrian Flux Insurance Services, an insurance broker out of Norfolk, England, that announced it will issue policies for self-driving cars.
"Unlike every insurance policy that you've ever held in the past, driverless car insurance needs to cover you against a whole host of modern problems, not just your typical bumps and scrapes," the company stated in a news release.
The U.K. allows the extensive testing of fully autonomous vehicles on public roads, as do the states of California, Florida, Michigan, Nevada, Texas and the District of Columbia in the U.S. New vehicles are increasingly coming with advanced driver assistance systems (ADAS), which can take control of the vehicle to ensure it stops before hitting an object or maintains speed and distance between other vehicles.
Google's self-driving pod car has no steering wheel. California is considering regulations that would require a human driver behind every autonomous vehicle's steering wheel. Credit: Google
That poses the question: who's responsible if a vehicle is in an accident but the driver is not driving it?
Flux's policy covers fully autonomous cars and vehicles with ADAS from software glitches, hardware failures and even hacking by third parties.
Egil Juliussen, director of research at IHS Automotive, said he's never heard of an insurance company writing policies for fully autonomous vehicles.
Flux said it designed its policy "for people who may have driverless or autonomous features in their existing car, or who may be thinking of buying a new car with driverless or autopilot features such as Tesla's Model 3, which is expected to ship in late 2017.
Stephan Appt, an intellectual property and information technology attorney with the U.K.-based law firm Pinsent Masons, said driverless cars will likely change the future of automobile insurance.
"If a machine can drive itself, and the owner has little or no influence over how it operates, and if no technical fault arises in the event of an accident that can be pinned on the manufacturer, then you can see why there might need to be a paradigm shift in consideration of liability," Appt said.
Under Flux's policy, if a car is in an accident and it's being driven in an autonomous mode, who will be responsible for the damage will depend on a number of factors, as it would be for other vehicles: the condition of the car, the driver's awareness and abilities at the time, road conditions, other vehicles or people involved.
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