Who Is Liable When A Self-Driving Car Causes A Crash?

Self-driving cars are no longer science fiction—they’re already on the roads in cities across the U.S. But as this technology evolves, it’s forcing the insurance industry to rethink everything from liability and coverage to how claims are handled.

Whether you’re a driver, passenger, pedestrian, or insurer, it’s important to understand how autonomous vehicles (AVs) are changing the rules of car insurance.

Who’s at Fault in a Self-Driving Car Accident?

In traditional car accidents, the driver is almost always responsible. But with autonomous vehicles—especially at higher levels of automation—the fault isn’t always so clear-cut.

Potentially Liable Parties:

• The human “driver” (if they were supposed to take over but failed to)
• The vehicle manufacturer (for hardware or mechanical failures)
• The software developer (for faulty code or misjudged scenarios)
• Third-party providers (like map data or sensor hardware vendors)

In some cases, multiple parties could share liability, making the claims process more complex.

Insurance Coverage: Who Pays?

If you’re hit by a self-driving car—or if you’re in one that crashes—your insurance claim may look very different from a traditional fender bender.

Key Scenarios:

• If a human is driving or supervising the AV: Liability will still fall on the human driver, and their personal auto insurance will likely apply.
• If the vehicle was in full autonomous mode: The manufacturer or software company may be liable, especially if the crash was caused by a technical error.
• If you own a self-driving vehicle: You’ll need to carry standard auto insurance, but with added complexities based on how autonomous your car is.

Insurers are still figuring out how to price premiums for AVs. Some may offer usage-based insurance, factoring in how often you let the car drive itself versus when you’re in control.

Product Liability vs. Driver Negligence

A major shift happening with AVs is the growing role of product liability in claims.

In traditional crashes, insurers evaluate negligence—did the driver text, speed, or fail to yield? With autonomous vehicles, that negligence might lie in design flaws, software bugs, or inadequate warnings about the car’s limitations.

For example:

• If a self-driving system fails to recognize a pedestrian, the manufacturer could face a product liability lawsuit.
• If the vehicle owner ignored a software update, the insurer may argue the driver shares the blame.

This shift could lead to increased litigation, and some auto insurance claims may evolve into complex liability disputes involving multiple companies. A car accident lawyer can help in such cases.

Insurance Industry Challenges

The rise of AVs presents several challenges for insurers:

• Determining fault: Was the accident caused by human error or a software malfunction?
• Policy wording: Many policies weren’t written with autonomous vehicles in mind. Expect new exclusions and endorsements.
• Data access: Telematics and black box data from AVs may be critical to claims—but who owns that data, and who can use it?

As a result, insurers are working to update policy language and develop new insurance models specifically for autonomous vehicles.

How to Protect Yourself as AVs Become Common

Even if you don’t own a self-driving car yet, you may share the road with one—and be impacted by its actions. Here’s how to stay protected:

1. Review Your Auto Insurance Policy

Make sure your policy doesn’t have exclusions that could affect you in an AV-related crash. If you drive an AV with autonomous features, notify your insurer to ensure you’re covered properly.

2. Document the Scene After a Crash

Whether the other car was autonomous or not, gather detailed information: photos, witness names, dashcam footage, and any details about vehicle systems (e.g., was Autopilot on?).

3. Ask for Telematics Data

If you’re involved in a crash with an AV, that vehicle’s onboard data could support your claim. Your attorney or insurer may need to request it from the manufacturer or service provider.

4. Stay Informed About Policy Changes

As AVs become more common, expect insurance policy structures to evolve. Some insurers may begin offering hybrid policies or split liability options—where coverage depends on whether a human or machine was in control at the time of the crash.

Final Thoughts

Self-driving cars are reshaping the auto insurance landscape. While the long-term goal is safer roads and fewer claims, today’s insurance world is full of unanswered questions: Who’s liable? Who pays? And what kind of coverage do consumers really need?

For now, the best protection is awareness. Understand your policy, stay up to date with the technology, and be prepared to adapt as both vehicles and insurance laws continue to evolve.