- What is car insurance for self-driving cars?
- How does insurance work for self-driving cars?
- Average insurance rates for self-driving cars
- How do insurance companies evaluate autonomous vehicles?
- What are the state laws and regulations for self-driving car insurance?
- How to get the best insurance rates for a self-driving car
- Do self-driving cars lower insurance rates?
- Methodology
- FAQ: Self-driving car insurance
What is car insurance for self-driving cars?
Insurance for an autonomous car is a policy that provides the state minimum insurance requirements and optional coverage, such as collision and comprehensive, offered by a standard policy, as well as specialty coverage, such as cybersecurity and coverage for advanced electronics.
Since self-driving cars are relatively new, insurance companies and legislators haven’t yet determined exactly which additional car insurance coverages will be needed for these vehicles. As the market evolves, so will coverage options.
Additional insurance coverage that may be needed for self-driving cars:
- Auto or manufacturer liability: Pays if the vehicle malfunctions and causes an accident
- Cybersecurity risks: Pays for damages resulting from a hack of the vehicle's systems.
- Driver-specific coverage: Different coverage if the human or computer is in control of the car
Standard insurance coverages available for all vehicles:
- Liability: Pays for property damage and bodily injuries to others
- Collision: Pays for damage to your vehicle if you’re at fault in an accident
- Comprehensive: Pays for damage unrelated to an accident, such as a fire
- MedPay and PIP: Pays for medical-related costs resulting from an accident regardless of fault
- Uninsured/underinsured motorist: Pays the difference up to policy limits if you’re hit by someone with no insurance or too little insurance to cover the damage
How does insurance work for self-driving cars?
Insurance coverage and rates for self-driving cars focus more on the vehicle itself, especially as automation levels increase and decisions are removed from the human driver. With a traditional vehicle, insurance works directly with the driver and is based on specific factors used to calculate car insurance rates, such as age and driving record.
Who is liable in an accident?
Normally, the at-fault driver is liable in an accident, but automation changes the dynamic. If the driver isn’t in control of the vehicle, should the driver or the manufacturer be responsible in an accident?
Insurance companies and the government have not yet reached a clear consensus on accident liability because self-driving cars are new. As the market evolves, so will insurance regulation. Part of the insurance discussion is based on the different levels of automation and the role the driver plays.
According to the National Highway Traffic Safety Administration (NHTSA), the levels of automation in self-driving cars are:
- Level 1 (Driver assistance): Basic automation, such as adaptive cruise control, but the driver is in control, and their insurance pays if they cause an accident.
- Level 2 (Additional assistance): Automation that allows the car to steer, brake, and accelerate on its own, while the driver retains ultimate control, and their insurance pays.
- Level 3 (Conditional automation): The vehicle handles all driving functions, but the driver must be alert and ready to take over, and their insurance pays.
- Level 4 (High automation): The car drives itself under certain conditions, such as in a limited area, and people in the vehicle are passengers. These vehicles are only available for certain companies, such as Waymo, and their insurance pays if they cause an accident.
- Level 5 (Full automation): The driver only enters a destination, and the vehicle handles all driving functions; again, people are passengers. These cars are still under development, so insurance needs are uncertain.
Average insurance rates for self-driving cars
Premiums for self-driving cars average $3,592 yearly for full coverage, based on an Insurance.com analysis of rates for vehicles known to have autonomous capabilities. That’s more than $1,000 a year above the average car insurance cost of $2,513.
How do insurance companies evaluate autonomous vehicles?
Insurers evaluate self-driving vehicles differently, focusing on the vehicle itself and the driver's characteristics, unlike insurance rates for non-autonomous vehicles, which are based primarily on the driver, including age, driving record, and location.
Risk assessment factors that insurance companies may consider include:
- Hardware: The physical components, such as sensors and cameras, not only affect how the car functions but also affect repair costs. Higher-end systems may function better and be safer, but are more costly to repair or replace.
- Software: Software that runs vehicle systems affects how the car functions. Updated software ensures the systems run smoothly and avoid glitches that can cause accidents.
- Cybersecurity: As with any computer, hacking is a possibility. Vehicles with robust cybersecurity features ensure they can operate safely with no one else at the controls.
What are the state laws and regulations for self-driving car insurance?
Each state creates its own rules and regulations for self-driving cars, and there is no overarching federal standard. Most state regulations center on defining terms and allowing commercial vehicle platooning, in which fully automated vehicles follow each other closely, typically under remote operator control.
Not all states have addressed the automated vehicle issue, but those that have are listed below.
| State | Legistlation |
|---|---|
| Alabama | Establishes a committee to study self-driving vehicles, defines a self-driving car, and outlines how commercial self-driving vehicles may operate |
| Arkansas | Defines autonomous and fully autonomous vehicles, regulates the testing of self-driving vehicles, and creates a pilot program that allows the operation of autonomous vehicles that comply with traffic safety laws |
| California | Creates rules centered around testing, using, and taxing fully autonomous commercial vehicles, such as Waymo |
| Colorado | Defines autonomous vehicle, allows for the use of the vehicle if it can obey all traffic laws, and requires a group examining new technology to allow an autonomous vehicle representative |
| Connecticut | Defines autonomous vehicle, creates a pilot program to test self-driving vehicles, and establishes a task force to study autonomous vehicles |
| Florida | Defines autonomous vehicle, allows for the use of fully autonomous vehicles for personal and commercial use, deems that the driving system is the operator of a fully autonomous vehicle, and creates multi-use corridors that various types of vehicles can use |
| Georgia | Defines automated driving systems, allows for a person without a driving license to be the driver in a fully autonomous vehicle, and defines coordinated platoons* for remote drivers |
| Hawaii | Requests a task force to determine how Hawaii can be ready for autonomous vehicles |
| Illinois | Defines an automated driving system vehicle and prevents local authorities from preventing the use of automated vehicles |
| Indiana | Defines and allows for vehicle platooning, where commercial vehicles are controlled remotely and follow each other closely |
| Iowa | Defines automated driving systems and an on-demand driverless-capable vehicle network, and regulates the use of the network |
| Louisiana | Defines terms such as autonomous technology and platooning, and creates regulations around remotely operated vehicles |
| Maine | Creates a commission to consider how to allow autonomous vehicle testing |
| Michigan | Defines terms such as automated driving systems, allows for testing, and exempts repair shops from liability when repairing automated vehicles |
| Minnesota | Defines and outlines the use of vehicle platoons* |
| Mississippi | Defines and outlines the use of vehicle platoons* |
| Nebraska | Defines and outlines the use of automated driving systems and allows the use of autonomous vehicles with no drivers |
| Nevada | Defines terms such as autonomous technology and platooning, and creates regulations around remotely operated vehicles |
| New Hampshire | Establishes a pilot program to test automated vehicle technology and an advisory commission to work with local agencies and recommend legislation |
| New Jersey | Establishes the New Jersey Advanced Autonomous Vehicle Task Force to conduct a study and recommend laws and regulations for automated vehicles |
| New York | Allows the motor vehicle commissioner to approve autonomous vehicle tests with law enforcement supervision |
| North Carolina | Regulates the usage of automated vehicles and defines terms such as platooning |
| North Dakota | Defines terms and uses for automated vehicles, such as platoons*, and provides for various studies about automated vehicles |
| Oklahoma | Defines terms such as platooning and driving automation systems, and determines that only the state may make laws about automated vehicles in Oklahoma |
| Oregon | Creates a Task Force on Autonomous Vehicles and exempts a driver in a vehicle with automated braking systems from being charged with following too closely |
| Pennsylvania | Defines terms, establishes the Highly Automated Vehicle Advisory Committee within PennDOT, and allows the use of up to $40 million for autonomous technology |
| South Carolina | Specifies that the minimum following distances don’t apply to the non-lead vehicle in a platoon |
| South Dakota | Allows the Transportation Commission to regulate the testing of platooning automated vehicles |
| Tennessee | Defines terms, prohibits local governments from banning autonomous vehicles, permits platoons*, and creates the Automated Vehicles Act |
| Texas | Defines terms, allows the use of platooning, and allows an autonomous vehicle to operate regardless of a human driver |
| Utah | Defines terms, creates studies and tests for automated vehicles, and sets regulations for autonomous vehicle usage and after an accident |
| Virginia | Allows a driver to view a display when the vehicle is autonomously operated |
| Vermont | Sets rules for autonomous vehicle testing and creates a committee to oversee |
| Washington | Creates a work group to develop policy recommendations around autonomous vehicles |
| Washington, D.C. | Defines terms and allows for the availability of a study that evaluates and makes recommendations around autonomous vehicles |
| Wisconsin | Defines platoons* and determines usage |
*Platoons refer to the use of vehicle-to-vehicle communication in commercial trucking to link and control multiple vehicles following a single human driver.
How to get the best insurance rates for a self-driving car
Drivers with self-driving vehicles can get lower insurance rates by taking advantage of discounts, considering manufacturer insurance (insurance offered by the car manufacturer, such as the Tesla Insurance program) and comparing quotes from multiple carriers.
Here’s a list of options for finding the best insurance rate for an autonomous car:
- Enroll in telematics (usage-based insurance): Telematics programs, such as Progressive’s Snapshot, track driving behaviors like hard braking and speed. These programs either offer car insurance discounts or specialized rates.
- Use the manufacturer's insurance: Some vehicle manufacturers, such as Tesla, offer their own insurance plans for cars with self-driving features.
- Ask for discounts: Most insurers offer discounts for vehicle safety features, such as adaptive cruise control, that can be bundled with other policy discounts.
- Look for insurers specializing in self-driving cars: Lemonade is currently the only insurer offering autonomous car insurance (aside from manufacturers), but that’s likely to change in the near future.
- Shop around: Compare quotes from multiple companies to find the best rates for self-driving car insurance.
Do self-driving cars lower insurance rates?
Insurance rates for self-driving cars are not lower than the average; in fact, they are about $1,000 higher per year. Although autonomous features can prevent accidents, these vehicles are costly to repair or replace. In addition to traditional factors that affect car insurance rates, such as driver age and driving record, insurers also need to consider other vehicle factors when determining premiums.
Many factors impact self-driving car insurance rates, including:
- Type of automation: Cars with assistive automation, such as assisted cruise control, help reduce accidents, lowering car insurance rates. Highly automated cars, however, are still considered a risk due to limited data.
- Automation system cost: Automated systems can be very expensive to repair or replace, increasing car insurance rates.
- Driver vs. vehicle ratio: How much the driver controls the vehicle vs. how much automation is in control can impact rates.
- Vehicle make and model: Some vehicles are more expensive than others, even without advanced systems, which raises car insurance rates.
Methodology
Insurance.com commissioned average car insurance rates from Quadrant Information Services in all 50 states and Washington, D.C.
Unless otherwise indicated, averages are based on our full coverage data set. This data set is based on:
- Bodily injury liability of $100,000 per person and $300,000 per incident
- Property damage liability of $100,000 per incident
- Comprehensive and collision deductibles of $500
- 40-year-old driver
- Good credit
- A clean driving record
- 12-mile commute, 10,000 annual mileage
Only vehicles with autonomous driving capabilities were included in the rate comparison.
Learn more about our data and methodology.
Sources:
- NHTSA “Automated Vehicle Safety.” Accessed April 2026
- National Conference of State Legislatures. “Report Autonomous Vehicles | Self-Driving Vehicles Enacted Legislation.” Accessed April 2026
FAQ: Self-driving car insurance
Are self-driving cars cheaper to insure?
No. The average cost of car insurance for vehicles with autonomous features is $3,592 a year, making self-driving cars more expensive than the average (the national average for all makes and models is $2,513 a year).
Who pays if a Tesla crashes on Autopilot?
Typically, liability would be shared between the driver and Tesla if the vehicle crashes while on Autopilot since the driver still has to pay attention and be ready to take control. However, liability may shift to Tesla if the accident is found to be due to a system malfunction.
Do insurance companies give discounts for autonomous features?
Yes, many insurers offer discounts for autonomous features, such as assisted braking, blind spot warning, and adaptive cruise control. The availability and amount of the discount vary by insurer.
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