Cars are becoming increasingly automated. Some even tout ‘driverless’ or ‘hands-free’ features. But what exactly does that mean for Canadian drivers and their insurance? Here’s a look at the technology, what’s allowed in Canada, and what it all means when an accident happens.
For this article, we reviewed Transport Canada’s connected and automated vehicle guidance, its six levels of driving automation, Ontario’s Automated Vehicle Pilot Program, and Ontario Regulation 306/15.
Read More: What the EV Transition Means for Insurance
The Six Levels Of Driving Automation
The scale runs from Level 0 through Level 5. The list below summarizes all six levels and the changing role of the driver.
- SAE Level 0 (No Automation): The driver performs all aspects of the driving task. The vehicle may have warning or crash avoidance systems that do not provide sustained automation of steering or longitudinal control.
- SAE Level 1 (Driver Assistance): The driver performs all aspects of the driving task except that the vehicle provides sustained lateral steering control or longitudinal control. The driver monitors the road and intervenes as needed.
- SAE Level 2 (Partial Automation): The driver performs all aspects of the driving task except that the vehicle provides combined lateral steering control and longitudinal control. The driver must supervise the automated vehicle functions and intervene as needed. The driver remains responsible for the driving task.
- SAE Level 3 (Conditional Automation): The vehicle performs all aspects of the driving task under specific conditions. The driver must be able to intervene if asked by the automated driving system.
- SAE Level 4 (High Automation): The vehicle performs all aspects of the driving task under specific conditions without intervention from the driver.
- SAE Level 5 (Full Automation): The vehicle performs all aspects of the driving task under all conditions without intervention from the driver.
It’s critical to know exactly what features your car has before getting behind the wheel.
What Are Canada’s Rules Around Automated Vehicles?
Transport Canada offers guidance for connected and automated vehicles and notes that automated driving technologies are evolving rapidly. As of publication, Transport Canada says that automated driving technology in SAE Level 3 to 5 vehicles is not available to Canadians to purchase.
Some provinces have authorized controlled testing of automated vehicles.
For example, B.C.’s Motor Vehicle Act says that it is against the law to operate an SAE Level 3, 4 or 5 automated driving technology on a highway unless regulations say otherwise.
Level 3 vehicles are allowed in Ontario, although they are not currently sold in Canada. Drivers remain responsible for operating them safely. Level 4 and Level 5 vehicles can be tested under strict conditions through Ontario’s Automated Vehicle Pilot Program.
In Ontario, if you’re sitting in the driver’s seat of an automated driving technology-equipped vehicle used for authorized testing, you’re considered the driver whether the automated driving technology is in use or not.
What Do Automated Driving Technologies Mean For Insurance?
Advertising terminology does not necessarily align with who is at fault for an accident or with insurance coverage, so it’s important to understand your policy. Fault determination depends on the circumstances of an accident, the terms of your policy, provincial fault determination rules, the driver's role at the time, the system's intended use and available evidence.
If an error or defect in a vehicle or its software contributes to an accident, it may not necessarily mean that an insurance claim will belong to the manufacturer. The driver's and vehicle owner's duties should not be confused with potential product liability claims.
When buying a car with automated driving technology, it’s important to understand what kind of system is being offered, the conditions under which it can be used, who’s responsible for what and whether it’s legal where you live. Don’t go by the terminology alone; make sure you get all the details.
Buying Insurance
When it's time to insure such a vehicle, discuss the exact make, model, year, VIN, features, modifications and intended use of the technology with your insurer. Get coverage confirmations in writing. Insurers will consider many factors, including claim history, when evaluating each vehicle individually.
Accidents
After an accident involving automated driving technology, make sure you obtain all relevant evidence. In addition to traditional evidence such as police reports, photos and witness information, get details about any alerts, events, sensor status, disengagements and software versions.
Read More: Learn How Your Car May Collect and Share Data
Premium Impact
When it comes to premiums, it’s difficult to predict the overall effect that automated driving technologies will have. Advances could reduce accidents and injuries, particularly if they’re safety-focused, which could lower premiums. Still, repair costs could also rise because of expensive sensors and complex calibration. Ultimately, each insurer will set premiums based on a host of factors, which will become clearer as insurers gain more experience with these vehicles.
Read More: See How ADAS Calibration Can Affect Repairs and Insurance