A report for the Association of British Insurers (ABI) has suggested that using the term can misleadingly suggest to road users that their vehicle is self-driving when that's not the case.
Although there are no self-driving cars on roads in the UK, manufacturers like BMW and Tesla offer features which can partially automate the process - including keeping the car in its lane and controlling its speed.
Now, Thatcham Research - which conducts safety tests for motor insurers - has urged the companies to be clearer about the different between those systems, and an autonomous car.
As reported by the BBC, the organisation's Matthew Avery said: "There's a problem with the manufacturers trying to introduce technology and consumers not being ready for it, not being sure if it's automated or 'Do I need to keep watching?'
"We want it very clear. Either you are driving - assisted - or you're not driving - automated."
Meanwhile, the ABI's James Dalton added: "Manufacturers must be responsible in how they describe and name what their vehicles can do, and the insurance industry is ready to hold them to account on this."