Ontario recently became the latest jurisdiction to allow companies to test automated vehicles or driverless cars. A provincial regulation was announced in October to allow testing on a wide variety of road conditions. Ontario joins California, Florida and Michigan in allowing for such testing.

In late October, Ontario’s Minister of Transportation Steven Del Duca hosted a roundtable of interested parties to discuss the topic of driverless cars. Ontario sees this as an opportunity to leverage the province’s manufacturing, technology and higher learning centres. Ontario is a leading manufacturer of automobiles, and also has a vibrant technology cluster in Waterloo Region. It now wants to be a leader in the technology and manufacturing of driverless cars. It is very much an initiative powered by economic development and investment. These are of course all positive, as are the benefits which may come from driverless cars such as improved safety and the elimination of human error in driving.

IBAO’s role is to be the voice of the consumer. It is also to actively input into policy decisions made by government so that informed decisions are made. At the Minister’s roundtable there were issues raised concerning the application of insurance on driverless cars. As we all know, Ontario’s auto insurance system is highly regulated. Adaptation will be required on the part of insurers to match the change in liability tied to the operator, in this case a computer, rather than an actual driver. There is also the issue of transition as roadways of the future may be populated with both driver-controlled cars and driverless cars operated by computer for several years. On the insurance side, there are several outstanding questions including whether coverage applies to the car or to the individual(s) in the car. Some manufacturers involved in the testing of driverless cars are even suggesting that insurance would be included as part of the purchase price with producers becoming insurance providers.

Driverless cars are an exciting look into the future. They encapsulate just how far we have come in technology and what is possible. However, things won’t happen overnight. Key issues such as insurance coverage and protection need to be better defined. It is a discussion IBAO will continue to be involved with, and one we will keep members informed of.

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