Autonomous vehicles framework: Government consultation signals new era for motor insurance

The government's recent call for evidence on developing the autonomous vehicle (AV) regulatory framework marks a significant step towards establishing the legal and operational infrastructure needed to bring self-driving vehicles onto UK roads.

Published on 4 December by the Department for Transport, the consultation seeks to inform secondary legislation, guidance, and policy development following the introduction of the Automated Vehicles Act 2024, which received Royal Assent last year. Minister for Roads and Buses, Simon Lightwood MP, emphasised that the evidence gathered “will help ensure the AV regulatory framework remains proportionate, forward-looking, and responsive to emerging technologies while upholding strong safeguards for public safety, data protection, and responsible operation.”

The government's vision and regulatory scope

Lightwood outlined the transformative potential of AVs; “Self-driving vehicles have the potential to increase opportunities and break down barriers for how people and goods move around the country, making transport safer, greener and more reliable. Strengthening road safety, improving accessibility and ensuring safeguarding remains central to this vision.”

The call for evidence is structured around two principal chapters: ‘getting AVs on the road’ and ‘once AVs are on the road.’ The consultation seeks stakeholder input across eight key areas including: type approval processes, authorisation, and user-in-charge requirements, no-user-in-charge operator licensing, data collection protocols, cyber security measures, in-use regulation, monetary penalties and incident investigation procedures.

Insurance implications and data access

Of particular significance for the insurance sector is the consultation's recognition that motor insurance for AVs will differ fundamentally from conventional vehicle cover. The announcement confirmed that: “AVs must be insured to legally drive on our roads, but motor insurance for AVs will be different to conventional vehicles. As a result, insurers will need timestamp data recorded by the vehicle, showing if the system was active, to determine liabilities.”

This acknowledgement addresses a critical challenge for insurers, establishing whether a vehicle was operating in autonomous mode at the time of an incident, which will be essential for determining liability and processing claims accurately.

The data collection question

The government has indicated it: “will consider mandating the sharing of AV data to insurers where necessary”, whilst acknowledging that “if this approach is adopted, industry have indicated they would expect further guidance from government on how to address issues of consent by the user-in-charge or data owner.”

Thatcham Research has welcomed the proposal but raised concerns about the precision of the language used. Tom Leggett, Vehicle Technology Manager at Thatcham Research, commented: “The Government's signal that it may mandate data sharing between Authorised Self-Driving Entities and insurers is a welcome step forward. Access to post-collision data should be non-negotiable, to enable fair claims handling and to build public confidence as this technology rolls out on UK roads.”

However, Leggett cautioned, “The phrase ‘where necessary’ feels vague and risks leaving too much to interpretation. Without clear statutory obligations, we could end up with a patchwork of agreements that hinder adoption and confuse consumers.”

Implications for insurers

The development of the AV regulatory framework presents both opportunities and challenges for insurers. As the technology moves from testing to deployment, insurers will need to adapt their products, underwriting approaches, and claims handling procedures to accommodate the unique characteristics of AVs.

Key considerations

Product development: Creating insurance products that appropriately reflect the shift in liability from driver to manufacturer, or authorised self-driving entity, when vehicles operate autonomously.

1. Data infrastructure

Establishing systems and protocols to receive, store, and analyse timestamp data and other relevant information from AVs to support claims determination.

2. Underwriting criteria

Developing new risk assessment frameworks that account for autonomous system capabilities, manufacturer safety records, cyber security measures, and operational design domains.

3. Claims handling

Implementing procedures to quickly establish whether a vehicle was operating autonomously at the time of an incident, and to preserve relevant data for investigation.

4. Subrogation

Preparing for potential recovery actions against manufacturers, software providers, or other third parties where system failures contribute to incidents.

Insurers may therefore wish to review policy wording, underwriting guidelines, and claims protocols to ensure clarity around data access requirements and the scope of covered operations. Proactive engagement with the consultation process, supported by collaboration with bodies such as Thatcham Research and the Association of British Insurers, could play a key role in shaping a regulatory framework that balances innovation with effective risk management. The consultation remains open until 5 March 2026.