In the rapidly evolving landscape of autonomous vehicles (AVs) in the United States, the legal and insurance sectors are grappling with the complex question of liability in incidents involving these highly automated systems. Traditional auto insurance models, based primarily on human error causing accidents, are increasingly inadequate for addressing accidents where decision-making is outsourced to artificial intelligence (AI). This has prompted a reevaluation of liability framework to accommodate the unique challenges posed by AV technology. The emerging consensus suggests a shift toward a product liability model, wherein manufacturers might bear greater responsibility for incidents. However, this transition raises significant questions regarding the balance of liability between end users, manufacturers and potentially other involved entities, such as software developers or cybersecurity firms. As AVs move closer to widespread adoption, insurance companies are exploring innovative policies that reflect the reduced risk of human error, yet adequately cover the complex interplay of technical malfunctions, software deficiencies or unforeseen interactions with traditional vehicles.
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