Who’s Liable When A Self-Driving Car Crashes? Understanding Autonomous Vehicle Insurance
February 5, 2025
The inside of a tesla model 3 is shown.
1. Who is Liable in a Self-Driving Car Accident?
  • A. Manufacturer Liability
    In many cases, the manufacturer of the autonomous vehicle may be held liable for an accident, particularly if a malfunction or defect in the car’s software or hardware contributed to the crash. For instance, if the car’s sensor system fails or if the software makes an incorrect decision, the manufacturer could be held responsible.

    As autonomous vehicles become more prevalent, manufacturers will likely face increased scrutiny regarding the safety features of their cars, including sensor calibration, AI decision-making systems, and fail-safe mechanisms. If the vehicle’s technology is proven to be defective or inadequately tested, the manufacturer may be legally responsible for damages caused by the accident.

  • B. Software Developer Liability
    Self-driving cars rely on complex software that helps the car navigate and make decisions. If an accident occurs due to a flaw in the software—such as a failure in object detection or a misjudgment in traffic patterns—the software developer could potentially be held liable. As the technology behind autonomous vehicles evolves, questions regarding the liability of tech companies and software developers will become more pressing.

    For example, if an AI system in an autonomous vehicle wrongly identifies an obstacle or misinterprets road conditions, and this leads to a crash, the software developer may be responsible for any damage or injuries caused. This raises questions about who ultimately carries the burden for the decisions made by the vehicle's AI system.

  • C. Vehicle Owner Liability
    Despite the vehicle’s autonomous capabilities, there are certain instances where the vehicle owner could be liable, especially if they were in control of the car at the time of the accident. For example, if the owner was actively monitoring the vehicle and decided to override its system at the wrong time, liability could shift to them.

    In addition, if a car owner fails to maintain the vehicle or install necessary software updates, they may share responsibility for the accident. This emphasizes the importance of regular maintenance and updates for autonomous vehicles, even though they operate without direct human control.
2. Understanding Autonomous Vehicle Insurance
A. The Role of Liability Insurance
B. Comprehensive and Collision Insurance
C. Product Liability Insurance for Manufacturers
D. Cyber Insurance for Autonomous Vehicles
3. How Does the Legal Landscape Affect Autonomous Vehicle Insurance?
A. Liability Laws for Autonomous Vehicles
B. Regulatory Bodies and Standards
Conclusion: Preparing for the Future of Autonomous Vehicle Insurance
At Priority Insurance LLC, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at 
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Disclaimer: The information presented in this blog is intended for informational purposes only and should not be considered as professional advice. It is crucial to consult with a qualified insurance agent or professional for personalized advice tailored to your specific circumstances. They can provide expert guidance and help you make informed decisions regarding your insurance needs.​
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