
Initially higher costs, but less chance of accidents
In the short term, whilst the use of AVs is relatively low, initial acquisition costs will be one of the largest issues for fleet managers. The vehicles themselves and associated maintenance costs are expensive, partly owing to the more complex software and technologies which contribute to the automation. However, in broad terms, whilst the cost of insuring autonomous fleets may increase, this can in principle be offset by a reduced number of accidents.Data threats
From an insurance perspective, both fleet operators and leasing companies are at risk of their vehicles being victim to data breaches and cyber-attacks and as such, there will almost certainly be heightened levels of data security as more autonomous fleets begin to be rolled out.Industry opinion
Opinions within the fleet management industry are varied as to whether autonomous vehicles are set to take off. Some believe that this technology is unlikely to make a significant impact in the near future, others have a more proactive and open attitude, keen to start preparing for when AVs start becoming more commonplace. In terms of insurance, fleet managers must start to have open conversations with their insurers now, making sure their current policies are suitable for the types of fleet being operated. Some insurers will be more proactive in their approach to designing and shaping policies to encompass fleets of AVs and if fleet managers envisage adopting this technology in future, it is worth having conversations now to gauge the attitude of their insurer. Whilst fleets won’t become autonomous overnight, fleet managers who engage early have the opportunity to help shape the insurance policy landscape. AVs are new and unknown and for a system to be put in place which benefits all parties, collaboration and joint working will be essential. Michael Brooks is a Legal Director and Paul White is an Associate in the Uninsured Loss Recovery & Insurance Litigation teams at law firm, Shakespeare Martineau.Share this story