Autonomous vehicles have received support from the UK government in the Queens speech today, under the proposal for a Modern Transport Bill.
Its aim is to ensure the country is "at the forefront of technology for new forms of transport" as part of UK's long-term economic plan.
The Bill seeks to cut red tape to enhance innovation and ensure new technology "delivers better, safer journeys".
The government believes that under the proposal, modern transportation can make "much more efficient use" of roads, railways and airspace, cut congestion, speed up journeys for people and goods and boost the UK's economy.
The Bill also features backing for the safe use of technologies in other vehicles, such as drones and spaceplanes.
The Association of British Insurers (ABI) welcomes the government's backing for driverless cars.
ABI director of general insurance policy James Dalton believes the technology will lead to fewer road accidents, and "that should lead to cheaper insurance premiums".
Earlier this year, the ABI and technology firm Thatcham Research established a group of insurers to address the issues posed by a transition to automated driving.
"Insurers are already working on how to shape the right framework to keep insurance as simple and straightforward as possible for the future of driving," Dalton said.
"The transition from conventional vehicles to a world where drivers become passengers will be the trickiest stage but insurers are committed to supporting the roll-out of this important technology 100%."
Trials of driverless cars are currently taking place in Bristol, Greenwich, Milton Keynes and Coventry. The government expects to see vehicles driving themselves later this year.