How Autonomous Vehicle Policy in California and Nevada Addresses Technological and Non-Technological Liabilities

This paper examines the technological and non-technological liabilities of autonomous vehicles, as well as policy aspects of robocars, using the Google self-driving car as an example. Self-driving cars have the potential to reduce the number of accidents and associated deaths and economic losses, but only if they are highly reliable. The possibility of software bugs, other technical problems, and associated liability and insurance issues raise barriers to the use of these vehicles. The State of Nevada has adopted one policy approach to dealing with these technical and policy issues. At the urging of Google, a new Nevada law directs the Nevada Department of Motor Vehicles (NDMV) to issue regulations for the testing and possible licensing of autonomous vehicles and for licensing the owners/drivers of these vehicles. There is also a similar law being proposed in California with details not covered by Nevada AB 511. This paper evaluates the strengths and weaknesses of the Nevada and California 2 Intersect Vol 5, No 1 (2012) approaches, in light of the technical and legal challenges currently facing these new autonomous vehicles. Ultimately Nevada AB 511 and California SB 1298 do not effectively reduce either the technological or non-technological liabilities, but rather set the foundation for future policy for which I make recommendations.