NSW trial of driverless cars called for

The NSW government is being urged to trial driverless cars on major state highways in a bid to get the vehicles operating by 2021.

Roads in Newcastle, Wollongong and Sydney Olympic Park are potential areas where the cars could be tested safely, the NRMA says.

Carmaker Volvo Australia has told a parliamentary inquiry looking into the technology major Sydney highways such as the M5 or M7 would also be good locations.

Volvo, which has already conducted trials of its semi-autonomous vehicles in Adelaide, says its cars would be ready for sale in NSW within five years if road rules changed.

"Volvo believes it is feasible to conduct a safe driverless car trial in Sydney on a connected road system like the M5, M7, M2 and M1," Volvo Car Australia managing director Kevin McCann said.

"This would pave the way for changes to the road laws prior to self-driving cars going on sale in NSW," he said after appearing at the inquiry on Friday.

The car company is among 16 transport groups and experts who have put forward submissions to the parliament's StaySafe committee inquiry in support of the trials.

A fully driverless car network could reduce the state's road toll by around 90 per cent, the NRMA said in its submission.

"Driverless vehicle trials being undertaken in real-world environments around the world have been involved in a relatively small number of on-road accidents," it said.

Transport NSW, meanwhile, said legislative changes would be needed to support the trials.

Key issues that would need to be considered included whether different rules and conditions should apply to motorists behind the wheel of a self-driving car.

Police would also need to be able to investigate and prosecute offences where autonomous vehicle technology was available, its submission said.

The insurance industry's ability to establish liability for an accident would also need to be considered.

Driverless cars can accelerate, brake and steer themselves without a driver intervening.