Driverless cars set to disrupt car insurance industry

Road rules and laws regarding car insurance must adapt to the advancements of driverless technology, said a government agency in a report released earlier this month.

“Australia’s laws need to be ready for the biggest change to our transport system since cars replaced horses,” said Paul Retter from The National Transport Commission.

The report outlined legal obstacles governments must address including the definition of a driver and fitting driverless cars into the insurance industry.

“It is also not clear whether people injured in a crash with an automated vehicle will always be able to claim insurance under compulsory third party insurance or state-based accident compensation schemes,” it stated.

Companies and manufacturers at the forefront of the driverless car market at present include Google, Apple, Tesla, GM and Uber. It’s estimated that the value of automated vehicles is growing at 16% each year, and trials continue to take place around the world including Australia.

In March, South Australia became the first jurisdiction in the country to allow driverless car trials on its roads.

“The laws have paved the way for trials to happen in South Australia and have seen other states follow our lead by beginning to consider the benefits autonomous technologies could provide,” said SA Transport Minister Stephen Mullighan in a statement.

Australia’s Transport Ministers will review all public submissions on the topic of driverless cars and meet to discuss them in November.

“Amending these laws shouldn’t be hard, but making sure the new laws are nationally consistent and encourage innovation while ensuring the safety of all road users will be important,” Retter from The National Transport Commission said.

With car sales still going strong in Australia and the slim chance of you setting foot in a driverless car for a few years yet, it’s safe to say car insurance is still important more than ever! On that note, compare deals, features and prices using our comparison tables to make the switch today.