More than 90% of automobile crashes are attributed to humanerror, according to the National Highway Traffic SafetyAdministration.

Given this fact, it is understandable why the idea ofself-driving automobiles and the many companies now activelypursuing their creation, has become a hot-topic.

Self-driving automobiles are convenient and trendy right now,but they also potentially hold revolutionary technology that couldincrease safety on the road.

Related: Insuring autonomous vehicles

It's not clear, however, just how fast the technology willcontinue to develop or how soon the roadways might see even a fewself-driving automobiles, never mind when they will becomemainstream.

Regardless of whether the widespread deployment of self-drivingautomobiles occurs next year or in 10 years, cities and towns nationwide need to be preparedfor everything that the new technology will bring to theircommunities; both the opportunities and the risks.

There are many potential benefits that self-driving automobilesoffer including:

- A reduction in traffic injuries and deaths;

- Increased mobility for the disabled and elderly;

- A reduction in congestion; and

- An enhanced connectivity for all demographics.

But along with these benefits, the introduction of self-drivingautomobiles to our roadways presents municipalities with amultitude of concerns, such as how the technology will interactwith infrastructure that is already a struggle to maintain, replaceand update.

Related: Is the insurance industry ready for self-drivingboats?

What to plan for

Although we do not know when society will fully embraceself-driving vehicles, it is not too early for municipalities tobegin planning for risks now. Budgets are already stretched to thebreaking point in many areas and supporting the infrastructure forself-driving automobiles will take time and money. Municipalitieswill need to begin identifying funding for these changesimmediately before they fall behind the curve and face more riskthan necessary.

Municipal budgets are already stretched to thebreaking point in many areas, but supporting the infrastructure forself-driving automobiles will take time and money. (Photo:iStock)

Here are some of the specifics that local governments shouldkeep in mind:

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        • Keep road signs clear and undamaged.Self-driving automobiles, in many forms, use cameras, lasers and software to identify roadsigns, lane markers, pedestrians, bikes and proximity ofsurrounding vehicles. Signs that are obstructed or only partiallyvisible or signs with damage may impact the self-drivingautomobile's ability to interpret the sign.  
        • Stay ahead of the curve. As a result of onerecent self-driving automobile accident, the U.S. Department ofTransportation will likely propose that all self-drivingautomobiles have vehicle-to-vehicle communication. While this maynot seem like an issue for the public sector, what this means isthat besides communicating with vehicles, self-driving automobilesmay need to also be able to communicate with street and roadinfrastructure such as intersection control devices (i.e. trafficlights, temporary road construction warnings, detours, etc.). Dueto all of the guidelines that municipalities may need to followregarding their street and road infrastructure, it will beimportant to watch for updates to the Manual on UniformTraffic Control Devices (MUTCD). The MUTCD tells municipalitieshow to build a road, where and how traffic signs are located,traffic signals, lane markers and so forth.
        • Keep an eye on the roads. Currently, local governments are required to maintaintheir streets and roads in a reasonable fashion and respond to anynotices of sign damage, obstruction or surface damage (pot holes).To prove your roadways and oversight fall into the reasonable zoneit is necessary to conduct self-evaluations of the street/roadinfrastructure and take action on anything that is notsatisfactory. Depending on how the law develops for evaluatingfault in self-driving car cases, this roadway evaluation process may become moreimportant in certain jurisdictional districts.
        • Stay a level ahead. Recently, the NationalHighway Traffic Safety Administration (NHTSA) incorporated the SAEInternational's definitions of automation into their policy. Thesedefine the level of a car's automation from 0 (no automation) to 5(full automation).  The type of infrastructure roadwaysneed for a Level 5 or 4 car compared to a 0, is drastic. By stayingup to date with the MUTCD and following any new guidelines forself-driving automobiles, municipalities can continue to maintainsafe roadways for the public.

Automation and the public sector

Aside from the concerns self-driving automobiles bring tomunicipalities' preparation, they introduce a new spectrum of riskfor when the time comes to introduce self-driving automobiles intotheir own fleets; from service vehicles to pool cars and more.While there is no guarantee municipalities' fleets will adopt theself-driving technology to the fullest extent, it is guaranteedthat they will need to communicate with the fully automated cars.For instance, if an ambulance or police officer is in emergencyresponse mode, how will self-driving automobiles know to pull over?Municipalities can begin to prepare by developing their ownpolicies to address issues such as procurement, public safety,testing, law enforcement and more.

Lastly, the integration of self-driving automobiles introducesmany questions regarding liability. Who is liable when accidentsinvolving self-driving automobiles occur? If the car is fullyautonomous, is it a products liability issue or will other factorsbe included such as road infrastructure condition? The answer tomost of these questions is still unknown. Currently, there is noright answer and it appears each incident is handled on a case bycase basis.

As a municipality, to avoid any foreseeable issues and tocontinue to stay on the forefront of change, it is important tostay active and engaged in all policy making at the federal, stateand local levels. What's to come is far from known, but failure totake part in the discussion and adaption will ultimately lead tomunicipalities having to catch up.

Kenny Smith has worked exclusivelyin public entity risk control for the last 13 years of his 33 yearinsurance career. You can contact Kennyat [email protected].

See also:

A crash course in how auto technology is changingclaims

Here's how auto technology will changeclaims