Who is responsible when self-driving cars go wrong?

Self-driving cars are no longer just science fiction. From smart parking to fully driverless taxis, AI is changing how we travel. But when something goes wrong, who takes the blame?

5 levels of AI driving

Before we dive in, here’s a quick look at how automated your car might be. These levels come from the Society of Automotive Engineers (SAE), which sets global standards for vehicle automation:

• Level 0 – No automation: the driver does everything
• Level 1 – Driver Assistance: the car helps with either steering or speed. The driver stays in control.
• Level 2 – Partial Automation: the car helps with both steering and speed simultaneously. The driver must constantly supervise.
• Level 3 – Conditional Automation: the car drives itself in specific settings. The driver must be ready to take over if asked.
• Level 4 – High Automation: the car drives itself in some settings, no human needed to take over.
• Level 5 – Full Automation: the car drives anywhere, no human needed, no steering wheel or pedals.

Autonomous driving can help you park

Many cars now have tools like park assist or self-parking. These systems can help steer, brake, or control speed when parking.

But you’re still in charge of the car. If it hits something while parking, you’re still the one responsible.

Hands-off driving

Some cars offer hands-off driving on motorways. Most of these use Level 2 technology. The car might steer and change speed, but you must stay alert and be ready to take control at all times. You're always responsible if something goes wrong.

A few cars now offer Level 3 features. In these cases, the car can take full control in certain conditions, like slow motorway traffic. If it’s safe to do so, you can take your hands off the wheel and stop watching the road.

If a crash happens while the system is in control, and it didn’t warn you to take over, the company behind the tech might be responsible. But if you ignore a warning and don’t take control, you could still be at fault.

Some driverless cars now show when they’re in self-driving mode using special lights. Mercedes-Benz, for example, uses turquoise lights on the outside of the car when its automated system is in control.

Fully driverless cars

Level 4 and 5 cars don’t need a driver. Under the UK’s Automated Vehicles Act 2024, when a vehicle is in full self-driving mode, the person inside is not legally responsible for how it drives. Responsibility falls on the company that made or runs the automated system. They must deal with any crash or damage caused by the AI.

With driverless taxi trials starting in the UK from spring 2026, these cars could be on the roads soon – even if you’re not in one yourself. So, if there’s a bump, you might find yourself swapping details with a car that doesn’t have a driver. Let’s hope it knows how to handle the awkward small talk.

Parking fines or traffic tickets

If a Level 4 or 5 self-driving car breaks a traffic rule, such as speeding or parking badly, the company behind the system is responsible, not the person inside.

Do you still need insurance for self-driving cars?

Yes. Even fully automated cars will need insurance by law if they’re on UK roads.

You’ll still need cover for other things too like fire, theft, or storm damage.

In future, we may see new types of cover beyond today’s comprehensive or third party, fire and theft policies. But insurance will still play a key role in keeping people protected.

Looking for cover right now?

Before the future brings fully automated cars, get your car covered today. Try Co-op Car Insurance.