Does Commercial Auto Insurance Cover Self-Driving Vehicles?
Yes, But Coverage Is Evolving
Yes, commercial auto insurance does cover self-driving vehicles, but the coverage landscape is rapidly changing. Traditional auto insurance focuses on the driver being at fault. AV insurance often needs to account for the vehicle manufacturer or software developer being partly or fully liable if the autonomous system fails. The key difference is that liability may shift depending on the vehicle's automation level.
How Coverage Works by Automation Level
Coverage changes based on how self-driving your car is. For Level 2 or 3 AVs that can do some things on their own, the driver is still partly responsible. A bigger part of the responsibility falls on the company that made the Level 4 or 5 AVs that can drive themselves or almost on their own.
Some insurance companies now offer a mix of methods. Some policies cover both the driver (when the car is being driven by hand) and the maker (when the AV tech is used). Coverage for business fleets needs higher liability limits, and telematics is used to check accident details and set rates.
The Liability Question
The main problem is figuring out who is to blame when accidents happen. At the moment, the person driving a car is responsible for any harm or damage to property that their driving causes. But it's a lot harder to do that math when the computer is driving the car and the person is just a guest.
Because self-driving cars need extra safety, the insurance pool might change toward product liability and cyber coverage, which is not the same kind of risk that auto insurers cover now.
Texas-Specific Laws and Requirements
Texas has been ahead of the curve when it comes to controlling self-driving cars. Self-driving cars must have motor vehicle liability coverage or self-insurance in an amount equal to what the law in this state requires. This is what Senate Bill 2205, which was passed in 2017, says.
Levels 4 and 5 self-driving cars must be able to follow all Texas traffic laws, have a recording device installed, follow federal laws, be able to reach a "minimum risk condition" in case of an emergency, be properly registered and titled, and have standard vehicle liability insurance.
In Texas, there are no higher insurance minimums just for self-driving cars; they have to have the same risk coverage as regular cars. Texas cities can't control self-driving cars. AVs have to follow the same rules as cars with a driver, like having insurance and being registered.
What This Means for Commercial Fleets
If you operate a commercial fleet considering autonomous vehicles, standard commercial auto insurance policies should cover them, but you may need additional product liability coverage. Work with your insurance agent to ensure your policy adequately addresses both human-operated and autonomous modes, and consider whether manufacturer liability provisions are necessary for your specific situation.
