The manufacturer’s liability for damages caused by autonomous cars

Abstract

The existence of autonomous cars is a reality. However, when the car and its driver are combined into a single product, challenges arise in reconciling liability with the promotion of innovation. This paper analyzes the current liability frameworks for drivers and manufacturers in traffic accidents and finds that, in the case of autonomous cars, these liability regimes tend to merge. Through the lens of the economic analysis of law, the study concludes that holding manufacturers liable and shifting costs to consumers is generally more economically efficient. However, this approach may also restrict and potentially hinder widespread access to autonomous vehicles. In this context, the paper advocates for the creation of standardized regulations to guide autonomous car production and support manufacturer liability. Compliance with these standards would allow for manufacturer liability without fault, based on the aggravated risk liability theory. Under this framework, the cost of damages could be shared with consumers through a specialized insurance system.