U.K. clears the way for autonomous cars on roadways
Similar regulations may arrive in the U.S. sooner than later, but insurers warn the technology is not as reliable as it seems.
The United Kingdom is now the first nation to regulate the use of self-driving cars on its roadways, with the first autonomous vehicles hitting the pavement as early as this year, the Department for Transport announced on April 28.
Vehicles fitted with Automated Lane Keeping System (ALKS) technology will be permitted on roadways but limited to speeds of up to 37 mph. ALKS uses sensors to enable a vehicle to drive itself in a single lane and maintains the ability to return control to the driver when needed.
The British government said this software could improve road safety by constantly monitoring speed, keeping a safe distance from cars, and ultimately reducing human error, which contributes to more than 85% of auto accidents.
The government is also consulting on The Highway Code rules to ensure the first wave of this technology is used safely and responsibly. This consultation will conclude on May 28.
“This is a major step for the safe use of self-driving vehicles in the U.K., making future journeys greener, easier, and more reliable while also helping the nation to build back better,” said Transport Minister Rachel Maclean in a statement.
Insurers, however, disagree with the U.K. government’s assessment of the safety of this technology.
Reuters reported that insurance companies are warning leaders that calling labeling ALKS technology as “automated” could mislead British drivers into thinking the cars are fully self-driving.
“Aside from the lack of technical capabilities, by calling ALKS automated our concern also is that the U.K. Government is contributing to the confusion and frequent misuse of assisted driving systems that have unfortunately already led to many tragic deaths,” Matthew Avery, research director at Thatcham Research, told Reuters.
Will the U.S. be next?
The U.K.’s decision to regulate self-driving cars begs the question: Will the United States be next?
According to Avi D. Kelin, counsel at law firm Genova Burns LLC, there is a possibility that new federal legislation will eventually come out of Washington, D.C., as the issue is an area of bipartisan interest. However, getting the “green light” on self-driving cars in the U.S. will be far more complicated than in the U.K.
“There is a divide between regulation by the federal government and regulation by state governments,” Kelin said to PropertyCasualty360. “The federal government will be focused on the safety and reliability of the vehicle itself, while state governments will continue their traditional function of managing licensing, insurance, and other rules of the road. We are looking at not just one set of laws or regulations, but federal guidelines and then separate laws in all 50 states.”
Several states such as California, Michigan, Arizona, Ohio, and Pennsylvania have already passed laws allowing for autonomous vehicles on their public roads, either for testing or full-fledged operation, he explained, adding that he expects more states to follow in the coming years.
How insurance may respond
“The seismic changes that autonomous vehicles bring to the insurance industry will follow the pattern that Ernest Hemingway identified for bankruptcy: gradually, then suddenly,” said Kelin, who served on the New Jersey Advanced Autonomous Vehicle Task Force.
While advanced driving support systems, such as lane-keeping assistance, blind-spot warnings, and smart cruise control, could potentially make driving safer, reduce crashes, and limit damages, the long-term impact of autonomous vehicles may “disrupt the insurance industry on a more fundamental level,” he said.
One question the industry will need to address as self-driving cars advance and become more prevalent on roadways is who will bear liability when vehicles can drive themselves with no control exercised by a human driver, such as no steering wheels?
“This is still an open question, but if the legal environment develops instead to impose liability on the manufacture of the vehicle and not the individual owner, then the industry may need to transition from selling insurance to individuals to insuring corporate manufacturers and robo-taxi fleet operators,” Kelin concluded.
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