The Department for Transport (DfT) has launched public consultation on the use of advanced driver assistance systems and self-driving technologies in cars on British roads.
As per the proposed measures, rules will be changed so that self driving vehicles can be insured for use on roads.
The highway code and regulations will be altered for the safe use of advanced driver assistance systems that enable changing lanes on motorways and parking the vehicle by remote control.
UK Transport Secretary Patrick McLoughlin said: “Driverless car technology will revolutionise the way we travel and deliver better journeys.
“Britain is leading the way but I want everyone to have the chance to have a say on how we embrace and use these technologies.
“Our roads are already some of the safest in the world and increasing advanced driver assist and driverless technologies have the potential to help cut the number of accidents further.”
Meanwhile, the government plans to launch a competition next month for an additional £30m from the Intelligent Mobility Fund, for research and development of connected and autonomous vehicle technologies.
In February, the government had awarded £20m to a number of projects working on driverless cars research.
A £19m fund is intended for driverless car projects in Greenwich, Bristol, and a joint project in Milton Keynes and Coventry.