The cost of insuring your car is likely halve by 2020 thanks to the advent of driverless car technology, according to a leading consultancy.

KPMG’s head of auto, John Leech, said: "Insurance premiums could halve once vehicles which communicate with each other and an 'autopilot mode' when driving on the motorway are developed – this is likely to happen by approximately 2020."

That could mean car insurance costs fall by around £265 per annum according to some estimates, since the new technology will eliminate bad driving.

It is estimated that nine out of 10 accidents are caused by human error.

While many new cars are already sold with autonomous technologies, it is believed that within the next five years nearly all new cars will be able to drive on the motorway and park automatically.

Avoidable accidents have kept insurance premiums high, although the cost of cover has begun to fall – by nearly 6 per cent over the last 12 months, according to some estimates.

94 per cent of all car insurance claims relate to whiplash or parking disputes – amounting to more than £3 billion in pay-outs each year.

According to Volvo, Tesla and Mercedes, the first driverless cars will be on UK roads between 2018 and 2020.

While driverless car technology may have failed to capture some motorists' imagination so far – a 50% cut in car insurance could make them take notice.

Premiums may begin to fall even sooner than that though. The British Insurance Brokers' Association (BIBA) believes that within the next five years 90 per cent of UK cars will be fitted with some kind of smart technology such as automatic emergency braking systems – which, say BIBA, could see premiums dropping by around 10 per cent.