The British Insurance Brokers’ Association has welcomed passage last week of the UK’s Automated and Electric Vehicles Bill.

The Bill creates an insurance framework for self-driving vehicles, providing clarity for the industry before the technology arrives on the nation’s roads.

Its guidelines cover the system of classification for automated vehicles, the right to exclude or limit liability, the right of recovery and the single-policy approach when dealing with claims.

“We’re pleased the Bill has now been enacted,” Executive Director Graeme Trudgill said.

“This legislation will enable the insurance industry to offer insurance policies that will provide cover for autonomous vehicles.

“Importantly, this will lead to healthy competition in the insurance market because consumers will have the choice of where they buy their insurance, and will not be tied to only having cover provided by their vehicle manufacturer.”