← Back to Blog

1764705820973-ChatGPT Image Dec 2, 2025, 02_08_45 PM.png

Introduction

According to the Insurance Institute for Highway Safety, there will be 4.5 million self-driving cars, with partial automation, on US roads by 2030.

Self-driving vehicles, often referred to as Autonomous Vehicles (AVs), which were a rare sight just a decade ago, are increasingly visible on US roads.

Companies like Tesla, Audi, Mercedes-Benz, Volvo, Toyota, Nissan, Ford, and even Alphabet’s Waymo and General Motors’ Cruise are making strides in the field, rolling out advanced versions of vehicles with new automation features, at more competitive rates.

AVs are not limited to personal vehicles and the ride-hailing sector. Recently, in 2025, Aurora Innovation launched commercial driverless trucking operations in Texas on Interstate 45 (I-45).

While Aurora has only commissioned two trucks, they plan to expand the operation to twenty driverless trucks and enter Arizona, Phoenix, and El Paso by the end of 2025.

The emergence and increased adoption of AVs bring with them complex new challenges in personal injury law, including those related to liability, claim filing, compensation, and implications for human drivers.

Even though AVs are expected to significantly reduce motor vehicle accidents, the current level of technology may not be suited to completely rely on automation. If you have been injured by a self-driving vehicle or plan to buy or own one, this blog will comprehensively cover every aspect related to personal injury claims from self-driving cars.


How are self-driving cars divided according to the level of automation?

While some vehicle manufacturers already have autonomous driving features, such as Tesla’s Autopilot, they are not entirely autonomous and still require human intervention in case of errors.

The Society of Automotive Engineers (SAE International) defined six levels of driving automation, now adopted in US laws:

  • Level 0: Momentary driver assistance only, such as collision or lane departure warnings.
  • Level 1: Driver assistance with either acceleration/braking or steering (e.g., adaptive cruise control).
  • Level 2: Assistance with both acceleration/braking and steering but still requires driver monitoring.
  • Level 3: Conditional automation; the system drives under limited conditions and alerts the driver when to take over.
  • Level 4: High automation; no driver input needed under certain conditions (e.g., Waymo robotaxis).
  • Level 5: Full automation in all conditions; no steering wheel or pedals.

These levels impact liability in personal injury cases. For instance, Tesla was ordered to pay $243 million after a fatal crash involving Autopilot (Level 2).


Rising trends of accidents and the risk of self-driving vehicles?

Most traditional vehicle accidents stem from human error, including:

  • Inebriation
  • Fatigue
  • Inexperience
  • Distraction
  • Reckless/high-speed driving
  • Ignoring traffic laws

Self-driving vehicles aim to reduce these risks. However, between June 2024 and March 2025, 570 crashes involving automated systems were reported (NHTSA).

AVs still struggle with:

  • Errors by human drivers
  • Poor road conditions
  • Maintenance issues

In October 2023, a Cruise Robotaxi hit and dragged a pedestrian due to failure to detect them.


Who’s liable when a self-driving car crashes?

There may be multiple liable parties depending on the circumstances:

1. Vehicle Manufacturer

Responsible under product liability laws if the accident is due to hardware or software failure.

2. Software Developer

Out of 159,840 AV disengagements in California, 25.7% were due to software/hardware issues.

3. Component/Sensor Suppliers

Liability may apply if sensors like LiDAR, RADAR, or cameras are faulty.

4. Vehicle Owner/Operator

If autopilot wasn't active or warnings were ignored, the driver may be liable.

5. Maintenance Contractors

Negligence in repairs/maintenance can result in liability.

6. Infrastructure Providers (e.g., government)

May be liable if poor road conditions caused the accident.


Self-driving taxis in New York

Companies like Waymo plan to operate in NYC. Passengers injured in AV accidents can file personal injury claims.

In New York, personal injury claims must be filed within three years.


Product Liability and Driver Negligence

Key legal concepts in AV-related claims:

  • Strict Product Liability: Holds manufacturers liable for defects, even without negligence.
  • Breach of Warranty: Liability if a driver breaches manufacturer warranty terms.
  • Comparative Negligence: A partially at-fault victim (e.g., 35%) can still claim the remaining percentage (65%) in damages.

Insurers now review electronic control modules to determine liability.


What does this mean for self-driving car owners?

Self-driving car owners should:

  • Use features per manufacturer instructions.
  • Install software updates and perform regular service.
  • Understand their car’s level of automation.

Tesla drivers often misuse Autopilot (classified as an Advanced Driver Assistance System) as full automation.

While some AV companies currently admit fault and settle, this may not always be the case in the future. Owners might be sued directly.


Is my vehicle insurance still valid?

Yes, but personal auto insurance may not apply in AV-related product liability cases.

Other relevant policies:

  • Commercial/Fleet Insurance (e.g., Waymo, Cruise)
  • Manufacturer Liability Insurance
  • Product Liability Insurance (by OEMs, software firms, sensor suppliers)

In New York, $5 million insurance is required to test fully autonomous vehicles.

Cross-border cases (e.g., Canada, Mexico) and insurer denials may complicate claims.


What should be done after a self-driving car personal injury accident in New York?

Step-by-step guide:

  1. Medical Attention – Visit ER, even for minor injuries (creates a medical record).
  2. Report the Accident – Call 911 to get an official report.
  3. Gather Evidence – Take photos, get witness info, and retrieve dashcam/vehicle data logs.
  4. Consult a Lawyer – A personal injury attorney can help calculate claims and avoid costly mistakes.
  5. Contact Insurance – Notify your insurer and begin the claim process.

Conclusion

As self-driving technology evolves, so does personal injury law. AV accident victims may be entitled to compensatory and punitive damages, but navigating liability can be complex.

Anyone injured in a self-driving accident should:

  • Preserve evidence quickly
  • File claims promptly
  • Consult a personal injury lawyer

References

Published December 02, 2025

logo of Rathee Law Firm

Join the newsletter

Subscribe for weekly updates.

Copyright © Rathee Law Firm 2026