The UK has two new pieces of legislation that will reshape who pays when a self‑driving car crashes. The Automated and Electric Vehicles Act 2018 already extends compulsory motor insurance to cover vehicles in autonomous mode, meaning the insurer is on the hook first when the car drives itself and something goes wrong. The Automated Vehicles Act 2024 then adds a whole authorisation and safety framework on top. Together, they shift the centre of gravity from the driver behind the wheel to the manufacturer writing the software.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
None of this is theoretical. The legal machinery exists now. What’s missing is the first vehicle authorised as “self‑driving” on UK roads, and the insurance products designed around this new liability chain. For anyone who buys car insurance — which is everyone who drives — the coming shift matters because it changes who you claim from, what data settles the claim, and whether your premium reflects your driving or the car’s software. Here’s what you actually need to know.
How liability shifts from drivers to manufacturers
The central concept here is the shift in civil liability. Under a conventional policy, if you rear‑end someone, your insurer pays and your premium goes up because your driving caused the loss. Under the AV regime, if the car is driving itself, your driving had nothing to do with it. The insurer still pays the victim first — that’s what AEVA 2018 mandates — but the insurer then has the right to recover its costs from the party whose product actually caused the crash. That could be the car maker, the software supplier, or the company that maintains the self‑driving system.
What I tend to notice is that most people still think of car insurance as a purely driver‑facing product. That assumption is about to become expensive if you don’t understand how the liability chain actually works. The insurer remains your first port of call, but the real financial risk settles on the manufacturer or software developer behind the wheel.
What the new framework actually means for your premium and your claim
There aren’t premium tables yet — no vehicles are authorised, so no insurer has published AV‑specific rates. But the government consultation signals how costs will break down. Under AEVA 2018, the insurer pays the victim immediately. That’s the same as now. What changes is what happens next: the insurer pursues the manufacturer or software provider for reimbursement. That subrogation process is new and untested in the UK.
The table below shows how liability and cost flow differ between a conventional accident and one involving an autonomous vehicle.
→ Scroll right to see all columns
| Scenario | Who pays the victim first | Who bears the final cost | What determines liability |
|---|---|---|---|
| Conventional accident (driver at fault) | Driver’s insurer | Driver (via premium increase / excess) | Driver behaviour, dash cam, witness statements |
| Autonomous mode accident (AV drives itself) | Vehicle’s insurer (AEVA 2018) | Manufacturer or software provider (via subrogation) | Timestamp data showing automated system was active |
| Mixed — driver takes over mid‑incident | Vehicle’s insurer | Depends on who was in control at the moment of impact | Timestamp data + driver input logs |
The practical consequence is straightforward: until the Secretary of State publishes that list, every car on UK roads is a conventional vehicle for insurance purposes. Your premium, your excess, your no‑claims discount — all driven by your behaviour, not the car’s software. The shift only activates vehicle‑by‑vehicle, as each model passes the self‑driving test under AVA 2024 and lands on the published list.
Three costly misunderstandings about AV insurance
Assuming “self‑driving” means your insurer treats you as a passenger
Even in a fully authorised autonomous vehicle, the insurer is still your first point of contact. AEVA 2018 doesn’t remove your involvement — it just gives the insurer a recovery route against the manufacturer. What I’d watch is the small print on your policy: some insurers may exclude or limit cover for autonomous mode accidents if the vehicle isn’t on the official list, or if you’ve modified the software. The list is the gateway. No list entry, no AEVA protection.
Thinking the vehicle’s data will automatically side with you
The government consultation flags that insurers will need timestamp data to decide whether the automated system was active at the time of the crash. That data lives with the manufacturer or the Authorised Self‑Driving Entity (ASDE). The government is considering mandating data sharing, but Thatcham Research has already cautioned that the phrase “where necessary” in the current proposals is vague and risks inconsistent adoption. If the data isn’t shared promptly, your claim sits in limbo. A dash cam covering your own perspective — time‑synced if possible — becomes a practical safeguard while the data‑sharing rules are still being nailed down. A unit like the Garmin Dash Cam X310 with 4K and GPS gives you an independent timestamp record that doesn’t rely on the manufacturer’s servers.
Believing the manufacturer always pays
Under AEVA 2018, the insurer pays the victim first and then recovers from the at‑fault party. That “at‑fault party” might be the manufacturer, but it could also be a software supplier, a maintenance contractor, or even a third‑party app that interfered with the autonomous system. The subrogation process is legally untested in the UK AV context. If the insurer can’t recover — because the responsible entity is overseas, insolvent, or outside the scope of the claim — the cost ultimately feeds back into premiums across the board. The idea that “the manufacturer pays” is true in principle but far from guaranteed in practice.
How the new AV insurance framework actually works — and what to do about it
Understanding the two‑law backbone
AEVA 2018 is the insurance law. It says: every vehicle insured on UK roads is also covered when driving itself, and the insurer pays first. AVA 2024 is the safety and authorisation law. It says: no vehicle may drive itself on UK roads unless it has been authorised as “self‑driving” after passing a test that proves it is safer than an average human driver. The two laws interact: AEVA covers the insurance claim; AVA determines whether the vehicle was legally entitled to be in self‑driving mode at the time. If the vehicle wasn’t authorised, the AEVA protections may not kick in.
What the government consultation tells us about data
The Browne Jacobson analysis of the government’s call for evidence identifies eight key areas, including data collection protocols, cyber security, and incident investigation. For insurance, the critical piece is timestamp data. The vehicle must record whether the automated system was active at the moment of the incident, and that data must be accessible to insurers. The government is considering whether to mandate that ASDEs share this data. Until that mandate is in place, your own records — photos, dash cam footage, witness details — fill the gap. A Garmin Dash Cam X110 with voice control and GPS provides a continuous, tamper‑evident record of what the vehicle was doing, regardless of who was driving.
The ASDE role and ongoing compliance
AVA 2024 introduces the Authorised Self‑Driving Entity — the body responsible for maintaining the vehicle’s self‑driving capability over time. That entity (usually the manufacturer or software developer) must submit to deployment authorisation checks, in‑use monitoring, and annual performance assessments. If the ASDE fails to keep the system safe, the regulator can revoke authorisation. For insurers, this creates a new underwriting criterion: which ASDE stands behind the vehicle, and what is their safety track record? Future premiums may vary not by your driving history, but by the manufacturer’s compliance history.
Pending rule changes that could hit sooner than expected
The government has not yet published the Statement of Safety Principles that will define the “higher than average human driver” benchmark. It has also not published the first list of authorised vehicles, and the data‑sharing mandate between ASDEs and insurers remains under consultation. Any or all of these could land within the next 18 months. Once they do, the first vehicles will be authorised, the first AV‑specific insurance products will launch, and the first claims involving autonomous mode will test the subrogation process. If you own a vehicle with advanced driver assistance features, watch for the manufacturer’s announcements about whether that model will seek authorisation — it directly affects your insurance position.
Does my current car insurance cover autonomous mode? ▾
What happens if the manufacturer goes bust before paying the insurer back? ▾
Can I be held liable if I override the autonomous system mid‑journey? ▾
Will my no‑claims discount be affected if the car causes a crash in autonomous mode? ▾
Do I need a dash cam if my car has autonomous features? ▾
When will the first authorised self‑driving vehicle be on UK roads? ▾
The insurance shift that arrives vehicle by vehicle
The mistake would be to treat this as a distant future topic. The legislation is law. The consultation is live. The first authorised vehicle will trigger the first real test of AEVA 2018’s subrogation process, and every insurer in the UK is currently building the data systems and underwriting frameworks to handle it. The gap between the legal framework and real‑world claims is closing faster than most drivers realise. If this was useful, you might also want to read The Future of Car Insurance in the UK — What to Expect.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
Sources and Further Reading
Pay‑As‑You‑Go Car Insurance — The Future of UK Driving — Another angle on how insurance products are evolving beyond the traditional annual policy model.
The Ultimate Guide to Lowering Your Car Insurance Premiums in the UK — Practical steps to keep costs down while the AV insurance landscape takes shape.
Simmons & Simmons (2024). Liability to licensing: Navigating the UK’s new self‑driving regime. 🔗
Browne Jacobson (2025). Autonomous vehicles framework: Government consultation signals new era for motor insurance. 🔗
