Self-Driving Cars and Liability

Written by Cooper & Friedman PLLC on March 10, 2026

Key Takeaways:

• The liability of a self-driving car crash is dependent on the level of automated driving and human input.
• Most cars on the consumer market today are level 3 and below, putting most of the liability on the driver still.
• Legal scholars consider 4 liability approaches for level 4 and 5 cars for when they do hit the market.

When someone crashes a car in Kentucky, normally a settlement is between the people driving the cars. But, what if there is no driver? AI-powered, self-driving cars are becoming more prevalent in society. According to Reuters, Ford, a big auto-maker in the US, is set to offer its first eyes-off driver-assistance system as soon as 2028. Driverless taxis like Waymo are already operating in cities like San Francisco, Los Angeles, Phoenix, Austin, Dallas, San Antonio, Houston, Atlanta, Orlando, and Miami, with plans to expand already announced (Axios).

With this development, what does it mean for liability in car crashes?

Levels of Autonomous Vehicles

It might not be evident, but features of autonomous vehicles have been around for years. Consider cruise control, a feature of most cars that allows for autonomous speed control. It doesn’t make the car totally autonomous, but it is considered an autonomous feature. Cars with cruise control are classified as Level 1 of 5 on the industry’s automated-driving scale (U.S. Department of Transportation).

Level 0: No Automation. The driver performs all driving tasks.

Level 1: Driver Assistance. The driver controls the car, but can use basic autonomous functions like cruise control.

Level 2: Partial Automation. The vehicle has combined automated functions like acceleration and steering (think lane assist or lane change). However, the driver must remain engaged and monitor the environment.

Level 3: Conditional Automation. Driver is necessary, but does not need to monitor the environment at all times. They must be ready to take control of the vehicle if notified.

Level 4: High Automation. The vehicle is performing all driving functions under certain conditions. The driver may have the option to control the vehicle.

Level 5: Full Automation. Fully autonomous vehicles that do not need any human intervention in any condition. The driver may have the option to control the vehicle.

In Today’s Consumer Market

When it comes to what is available for purchase, level 2 cars and under are what you’ll find. The market for Level 3 and 4 cars may be growing, but due to the cost of producing them and the additional insurance needed, many car companies stick with what is most affordable.

Scholar Discussions of Self-Driving Liability

In Level 3 cars and below that still require driver input, liability is finicky. Manufacturers will put several warnings about the auto features not making the car fully autonomous, but partial fault may still go to them if there was a malfunction of the automation. In level 4 and 5 cars, unless there are negligent, reckless, or malicious decisions made by the passenger that disrupt the normal functions of the cars, the company would have a bigger part in liability because of the lack of human input.

According to Brookings, there are four structures of liability that policymakers are considering:

1. Traditional product liability approach.
   1. The plaintiff must show that there was a design or manufacturing flaw in the self-driving car and this flaw led to the accident that caused the injury or property damage.
2. Strict product liability approach.
   1. The self-driving car manufacturers would be liable for any damages their cars produced, regardless of whether the car was defective.
3. The “reasonable human driver” standard. 
   1. The car manufacturer would be held liable for damages whenever its computer driver fails to avoid an accident that a reasonable (that is, competent, unimpaired, and attentive) human driver would have avoided.
4. The “reasonable computer driver” standard.
   1. The driving performance of the self-driving car would be compared to an industry yardstick—an average level of performance, an industry-determined level of expected performance or a state of the art standard focusing on what level of performance is technically and economically feasible.

Frequently Asked Questions About Self-Driving Cars and Liability

• Who is liable in a self-driving car accident? Depending on how much driver input is necessary, liability varies by car. Level 2 and below often fall on the driver, level 4 and 5 often fall on the manufacturer, and level 3 is dependent on the case.
• Can you sue Tesla for autopilot crashes? If the crash resulted from a malfunction of the car, then you may be eligible for a lawsuit.
• How is fault determined if a self-driving car crashes? While the number of cases of self-driving car crashes is low, fault would, in general, likely be determined by:
  • Vehicle data logs (“black box” event data recorders)
  • Sensor and camera footage
  • Software version/history
  • Police reports and witness statements
  • Road and weather conditions

If you or someone you love has been injured in a car accident in the State of Kentucky and are in need of an experienced injury attorney, give the lawyers at the Cooper & Friedman law firm a call. The attorneys at Cooper and Friedman PLLC have over 50 years of combined experience defending the rights of car accident victims. Contact us with questions you might have or schedule a free case consultation with an attorney by calling 502-459-7555 today.

Posted Under: Car Accidents