Autonomous Vehicles and the Future of Liability
As self-driving cars transition from futuristic concept to everyday reality, the legal and insurance landscapes are poised for dramatic shifts. These vehicles, designed to operate without human input, promise increased road safety and operational efficiency. This article explores the potential impact on personal injury liability and the responses of the insurance industry.
Increased adoption of autonomous vehicles could drastically reduce accidents caused by human error, such as distracted driving, and thus transform the insurance industry. Advanced technologies like lidar and other sensors allow these cars to detect and respond to hazards, potentially preventing accidents. However, it’s critical to acknowledge that driverless vehicle systems, like all technologies, are not infallible, so accidents will inevitably occur.
Insurance Policies: Adapting to a Driverless World
Insurance companies will need to adapt their policies to address incidents involving autonomous vehicles. Current personal auto policies typically cover injuries arising from the “ownership, maintenance, use, loading, and unloading” of a vehicle. The definition of “use” might undergo significant reinterpretation in the context of self-driving cars.
Consider a scenario: if an owner programs their self-driving car to transport a friend to an event, who is considered the user, and what are the implications for liability should an accident occur? The legal precedent around passenger responsibility can get complex in these situations. Generally, passengers are not considered liable for the driver’s negligence. However, a passenger encouraging dangerous driving practices or an action that contributes to an accident may be held liable.
Navigating the Complexities of Liability
The question of vehicle “use” liability, and the extent to which it includes passengers, will likely depend on the way courts define it. For instance, if the vehicle owner is a backseat passenger, is the vehicle manufacturer or the owner responsible for the vehicle’s actions?
Here is a hypothetical case to illustrate this complexity:
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Scenario: Harry owns a semi-autonomous vehicle with autopilot. To activate it, he must sit in the driver’s seat, with his hands on the wheel. If an accident occurs in this mode, Harry’s liability and insurance responsibilities are clear-cut.
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Complex Scenario: However, the situation becomes more complex with a fully autonomous vehicle lacking a steering wheel or pedals.
Imagine Harry rents a fully autonomous car. From his smartphone, he instructs the vehicle to drive to his location. During the trip, the car runs a stop sign obscured by a large political advertisement and causes an accident. Even though Harry was asleep in the backseat, can he be sued by the other driver? And will his personal auto policy, which covers his ownership and use of personal cars, offer protection in this situation?
In such cases, multiple parties could be held liable: the maker of the sensor that missed the obscured stop sign, the manufacturer of the vehicle, or even the politician who authorized the advertisement’s placement.
Lessons from the Aviation Industry
Cases involving autopilot malfunctions in airplanes may offer insight. For example, in In re Aircraft Crash Litigation, a court determined that the United States Air Force’s “control over the scope and design of the testing programs associated with” the autopilot software meant that Boeing, McDonnell Douglas, and Lear could not be held liable.
Future liability disputes involving autonomous vehicles will likely feature battles between software companies, hardware manufacturers (such as those that produce cameras or sensors), and the car manufacturers. Courts will need to determine what caused the accident: a specific component failing or a design flaw in the vehicle?
The Road Ahead
Currently, well-established precedents for liability and insurance coverage issues related to fully autonomous vehicles are lacking. New laws are likely needed to clarify this, and insurance policies may begin to include specific endorsements regarding coverage for autonomous vehicle incidents as their prevalence grows. Recent developments, such as Uber’s partnership with Waymo in Phoenix, Arizona, indicate that fully autonomous vehicles’ availability is increasing.
It is wise for early autonomous vehicle owners to seek advice from their insurance providers to ensure that their coverage adequately addresses potential risks. As autonomous vehicles become more common on the roads, it will be essential to monitor how these issues evolve.
Erin Mindoro Ezra is a regular contributing columnist on insurance coverage for Reuters Legal News and Westlaw Today. The opinions expressed are those of the author. They do not reflect the views of Reuters News.
