Direct Line magazine

How will driverless cars affect car insurance?

Updated on: 29 July 2026

Back in the 1980s, Knight Rider showed us what life might be like with a talking, self-driving car called KITT. Exciting, liberating, and endlessly cool. But the reality – in the UK at least – was that 40 years ago, the biggest-selling car was the Ford Escort.  

The idea that one day we might get in a car and play board games with nobody sitting at the wheel feels exciting to some and terrifying to others, but it’s important to remember: we’re not there yet.

One of the biggest misconceptions is that there are cars on the road today that are already driving themselves.

But behind the headlines of driverless taxis and autonomous vehicle trials in the UK, the truth is that full automation will happen gradually. Right now, there are no self-driving cars listed for use in Great Britain.

But with every new model, our cars are becoming more technologically advanced. In many small ways, automation has started, but don’t worry – you’re still very much in the driving seat.

Assisted vs autonomous: what’s the difference?

When we talk about all this new technology, we’re actually talking about assistance systems, not autonomous driving.

Right now, most cars on UK roads have some kind of driver assistance technology – modern features that are designed to support your driving, such as:

  • Automatic emergency braking (AEB)
  • Adaptive cruise control
  • Automated lane keeping system (ALKS)
  • Parking assistance
  • Pilot Assist (in Volvo and Polestar vehicles)

These can all be helpful features, but they don’t replace the driver. Most features are limited to specific conditions, such as detecting two clearly visible white lines to drive within.

So, although motorways may be suitable for cruise control or lane-keeping, the UK’s winding country lanes pose a unique challenge. Changing light conditions and camber mean that, for the foreseeable future at least, we’ll still need humans to navigate.

So don’t panic – fully driverless cars aren’t arriving overnight

While you might hear that autonomous vehicles are “coming soon”, they’re likely to appear gradually and in very specific situations first.

From what we’re seeing:

  • Early versions will appear in controlled environments (like pilot schemes or shuttle services).
  • They’ll be limited to certain road types, such as motorways or defined routes.
  • It’ll take years for this technology to spread across UK roads as people upgrade older vehicles.

For a long time, we’ll have a mix of different cars sharing the roads. We already have a range of manual, automatic, electric, hybrid and petrol vehicles, and that’s completely normal.

Where the technology works (and where it doesn’t)

Driver assistance features rely heavily on their surroundings. They tend to work best when:

  • Road markings are clear
  • Visibility is good
  • Traffic conditions are predictable

And they can struggle when:

  • It’s dark or raining
  • Lane markings are hard to see
  • Roads are more complex (like narrow country lanes)

That’s why understanding your car is key.

These features are designed to help make your journey easier, but they’re not a replacement for your judgment and local road knowledge.

Where to start: Get comfortable with your car’s features

If your car comes with lots of tech, it can feel like a lot to take in. While some people will love embracing all the latest features, others might take a more cautious approach and switch off new technology.

The best approach? Take it step by step.

That way, you can build confidence without feeling overwhelmed.

It’s also worth thinking about when and where you want to try out new features. Is heavy rain the best time to try out new technology? Probably not.

Stick to clear conditions and familiar roads when you get started. Then, once you’ve mastered it and feel comfortable, try another feature.

What does this all mean for your insurance?

From your perspective, not much will change. Your insurer should have guidance on driver assistance technology and what you’re covered for on UK roads, in accordance with UK legislation.

However, even with driver assistance features in use, the expectation is that the driver is in control and ready to act.

That means you should always:

  • Stay alert
  • Be ready to take over at any time
  • Use features as intended
  • Keep software up to date

If something does happen, your cover works as you’d expect, and your insurer will handle the claim in the usual way.

Behind the scenes, the industry is still working through the details of how new automated technologies will affect car insurance. But for now, your day-to-day responsibilities as a driver won’t change.

Are self-driving cars safe?

The Department for Transport estimates that up to 88% of road accidents are caused by human error, so it’s natural to assume that automated cars would make the roads safer. But until we know for sure, it’s essential to stay vigilant.

It isn’t legal to drive a fully automated vehicle on UK roads right now, so there’s no reason to expect a sudden change in driving habits just yet. True ‘hands-off, eyes-off’ driving won’t happen any time soon, but as drivers try out new driver-assistance tech on their cars, it’s more important than ever to give yourself extra space on the road.

A mix of old and new

Here’s a quick history lesson to put things in perspective:

General Motors began mass-producing automatic transmissions in 1939, yet by 1997 – nearly six decades later – only about 10–12% of new cars sold in Europe were automatics.

Of course, today, most new cars in the UK are fully automatic, but plenty of drivers still prefer a manual. They’re not obsolete, almost 100 years after automatics arrived on the scene.

So, for years to come, UK roads will include:

  • Cars with no automation
  • Cars with driver assistance features
  • Early autonomous vehicles in limited use

This gradual change is one of the reasons why things won’t shift overnight.

The bottom line

Although driverless cars are getting a lot of attention right now, it’s good to remind ourselves that, based on historical advances in driving technology, it could be a long time before they’re commonplace on our roads.

And even as cars get smarter, they’re not as smart as humans… yet.

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