Sep 17, 2014 04:30 PM EDT
Audi Is Now Licensed To Test Self-Driving Cars in California

Audi has claimed the very first permit in California to test self-driving cars after the state's new regulations for autonomous vehicles kicked in Tuesday.

The California Department of Motor Vehicles requires self-driving cars to be registered and insured for $5 million. They must also complete testing programs and be manned by qualified drivers who can take over the vehicle if needed.

"It's a great opportunity for California," automotive analyst Thilo Koslowski of the research firm Gartner told the Los Angeles Times. "A lot of the technologies and companies involved in self-driving vehicles are based here. It makes a lot of sense to see the state officially enabling the testing of these vehicles."

Other automakers including Nissan, Mercedes-Benz, Toyota, Ford and General Motors are also working to develop autonomous technology, while Michigan, Florida and Nevada have permitted the testing of self-driving cars.

A recent IHS Automotive study predicted that around 230,000 new self-driving vehicles per year could be on roads by 2025, the L.A. Times reported.  

Proponents of autonomous technology say that automatic systems will be much safer than cars driven by fallible humans. 

"Machines are already better than we are at sensing what's going on around us," Koslowski told the L.A. Times. "Any flavor of a self-driving car will allow for a safer driver experience."

Audi is prepared to hit the ground running with the new permit, announcing plans to start testing a tricked-out A7 autonomous vehicle in the San Francisco area right away.

California didn't previously forbid self-driving vehicles since the state had no laws that specifically prohibited autonomous technology; however, lawmakers wanted to promote innovation with the recent bill.

"The State of California, which presently does not prohibit or specifically regulate the operation of autonomous vehicles, desires to encourage the current and future development, testing, and operation of autonomous vehicles on the public roads of the state," according to the state bill to approve the new autonomous vehicle regulations. 

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