Car manufacturers could create personalised insurance policies for drivers using data collected from their connected cars of the future, according to AA Insurance.

Janet Connor, AA Insurance managing director, said the telematics and large amounts of data manufacturers could collect from car performance and driving habits could be used to influence insurance premiums.

Speaking at the British Brokers' Association conference in Birmingham, Connor said if car makers were to introduce their policies it would raise questions about who owns the data and also about customer choice.
 
"The trials of driverless cars have led so some poorly-considered speculation about what this means in terms of insurance.

"Much of the technology for driverless cars already exists and is being built into new car models, increasingly mid and lower-range vehicles as well as top end marques: for instance automatic emergency braking," said Connor.

Connor said some insurance brokers believe new car technology will "rip the heart out" of the motor insurance market. However, she said the sector now has a "once-in-a-a-lifetime" opportunity to play a part in how the market is developing.

Connor believes that brokers are best placed in terms of flexibility and choice to help customers adapt to the technological changes taking place in the motor market.
 
She said: "And I'm glad that the British Insurance Brokers' Association (BIBA) is already exploring with motor manufacturers, the Government and the insurance industry ways to ensure brokers will play a vital role in future technology-based insurance."