…The long term answer has always been obvious. If the software/hardware in a car is responsible for the crash (i.e. caused the vehicle to do something like depart its right-of-way) then it’s pretty obvious that the vendor of that car will be liable, or perhaps some proxy for the vendor like a taxi fleet operator. Today, Volvo declared this to be the case for them and Google has said it as well. Good
for them.

It is not just a legal decision. After all, customers are not going to want to buy or even ride in cars if the rule is, “If this car crashes because of our bug, then you (or your insurance) will be liable, and demerit points or even criminal charges might go to you.” Early adopters might accept that but it’s not a workable
long-term policy.

Even if you could get such a system in place with passenger-insurance, the reality is the vendor would still get sued. Even a great policy and indemnification from the passenger would not prevent plaintiff’s lawyers from wanting to go after the deep pocketed vendor. They would look for the hope of negligence (or in their dreams, VW style fraud) to get juicy damages. Even if not directly liable, the vendor would pay more in legal costs for some cases than the cost of the accident.

Interesting discussion of a fast emerging topic. Talk about put your defense team where your marketing is…

From www.roboticstrends.com

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