The Association of British Insurers has cast doubt on the emergence of true autonomous vehicles.

Director of General Insurance Policy James Dalton says even use of the term “driverless” is “misleading… and potentially dangerous” because consumers need to understand the limits of vehicle autonomy.

“We know all too well from conventional vehicles that drivers misunderstand what their cars can and cannot do,” he said in a recent speech.

“At least until the very long term, a car is going to require a trained, competent and sober driver to oversee its operation, even if it is operating autonomously.”

Mr Dalton says many consumers believe a driver should always be in control, and Google’s experience proves autonomous vehicles can crash.

“None of what I’ve just said should be interpreted as the insurance industry not supporting the development and rollout of autonomous vehicle technology,” he said. “Far from it. But there are some big questions for the future about consumer demand for autonomous vehicles.

“And there are big questions… about the political, regulatory and liability environments in which these vehicles will operate.”

He accepts autonomous vehicles have the potential to significantly improve road safety, and such developments threaten traditional insurance markets.

But he says others, including vehicle manufacturers, also face disruption and “predictions about the demise of the insurance industry… are wide of the mark”.