The report, by the Institution of Management Engineers (IME), said 95 per cent of crashes happen due to driver error.
"The benefits of this sort of technology are huge," said Philippa Oldham, head of transport at the IME. She added that the UK could benefit to the tune of billions "due to fewer accidents, improved productivity and increased trade".
The IME called on the government to "help integrate driverless vehicles into the current UK transport network".
It urged the Department of Transport to work closely with the industry to "address the safety issues of mixed road use" to help integrate autonomous cars into the UK's road network.
"This will include updates and standardisation to road signage and road markings to enable these driverless vehicles to operate in the safest way possible," said Oldham.
The organisation also said car dealerships and manufacturers must clarify how they will provide after-sales care, technical updates and upgrades.
"Much more work needs to be done to clarify regulation and insurance issues," said Oldham.