Self Driving Cars 101
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Policy & regulation

Regulatory Compliance for Self-Driving Cars

Regulatory compliance is the set of laws, permits and safety rules a self-driving car must meet to test or operate on public roads. There is no single global standard. In the United States it is largely a state-by-state patchwork, layered on top of federal vehicle safety rules, and it differs again across Europe and Asia.

Where did self-driving regulation begin?

In June 2011 Nevada became the first place in the world to pass a law for autonomous vehicles. Assembly Bill 511 directed the state motor vehicle agency to write rules for testing and operating self-driving cars, and in 2012 Nevada issued the first testing license, to Google.

Other states followed quickly, including California, Florida and Michigan, each with its own rules. That early head start is why so much testing clustered in a few states.

Who regulates self-driving cars?

In the United States the job is split. The federal regulator, NHTSA, sets the safety standards the vehicle itself must meet and issues guidance. The states control licensing, testing permits, where driverless operation is allowed, and insurance. There is still no comprehensive federal self-driving law.

Outside the United States the picture differs again. International bodies such as UNECE set shared vehicle rules, the European Union has its own framework, and individual countries add their own road laws and approvals.

What does a company have to comply with?

Compliance is layered. A developer must satisfy rules about the vehicle, about how and where it may drive, and about what it must report when something goes wrong.

LayerWho sets itWhat it covers
Vehicle safetyNHTSA (federal)The car's equipment and crashworthiness
Testing and operationState agenciesPermits to test and to run driverless on public roads
Crash and data reportingState and federalMandatory reporting of collisions and disengagements
InternationalUNECE and national rulesVehicle approval and road rules outside the United States

Why is regulation so fragmented?

The technology moved faster than the law, so rules grew up one jurisdiction at a time rather than from a single plan. Hard questions about safety evidence, liability after a crash, and public trust are still being worked out.

The result shapes the product. Because approval is local, operators confine their cars to the cities and conditions where they are permitted, which is one reason a robotaxi service exists in one metro area but not the next.

Read: The SAE Levels of driving automation

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Frequently asked

Which was the first state to legalize self-driving cars?
Nevada. In June 2011 it passed Assembly Bill 511, the first law in the world for autonomous vehicles, and in 2012 it issued the first testing license, to Google.
Is there a federal self-driving car law in the United States?
There is no comprehensive federal self-driving law. NHTSA sets the safety standards for the vehicle and issues guidance, while individual states regulate testing, driverless operation, licensing and insurance.
Who regulates self-driving cars?
In the United States, NHTSA regulates the vehicle's safety and the states regulate testing and operation. Internationally, bodies such as UNECE and each national government set their own rules.
Why do robotaxis only operate in certain cities?
Approval to run driverless is granted locally, and the cars are designed for a defined set of conditions. So operators limit service to the specific cities and situations where they are both permitted and confident.

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