What regulators are doing right now with self-driving cars

Autonomous vehicle regulation is split between federal agencies, state governments, and local authorities, and they are not moving at the same speed. The National Highway Traffic Safety Administration (NHTSA) sets safety standards for all vehicles sold in the United States, but it has not yet issued final rules specific to self-driving systems. Instead, manufacturers operate under a patchwork of state permits, local approvals, and voluntary safety guidelines while testing and deploying autonomous vehicles on public roads.

California, Arizona, and Texas have issued permits to companies like Waymo, Cruise, and Tesla to test or operate autonomous vehicles with varying levels of human oversight. Some states require a safety driver in the vehicle at all times; others allow driverless operation in defined geographic areas. Federal regulators are watching these real-world deployments to gather data before writing binding national rules, which means the rules you face depend heavily on where you live and which company operates the vehicle.

Key Takeaways

  • NHTSA has not yet issued final federal safety standards for autonomous vehicles, so states and cities are setting their own rules for testing and operation.
  • California, Arizona, and Texas currently permit driverless operation in limited areas, while most other states require a human safety driver or prohibit testing altogether.
  • Liability and insurance rules are still being debated—it is unclear whether manufacturers, operators, or vehicle owners will bear legal responsibility in a crash.
  • Federal regulators are collecting data from real-world deployments before writing national standards, so rules are expected to shift over the next two to five years.

How states are handling permits and testing right now

California's Department of Motor Vehicles issues permits under two separate programs: the Autonomous Vehicle Testing Program, which requires a human safety driver, and the Driverless Autonomous Vehicle Pilot Program, which allows operation without one in specific zones. Waymo and Cruise hold permits under both programs and operate in San Francisco and surrounding areas. The state collects incident reports from all permitted operators and publishes them quarterly, though the data does not include near-misses or minor collisions that do not result in injury.

Arizona has taken a lighter regulatory touch. The state does not require a permit for autonomous vehicle testing, though companies must register with the Arizona Department of Transportation and carry insurance. Waymo operates a commercial robotaxi service called Waymo One in Phoenix and Chandler with no safety driver requirement. This approach has allowed faster deployment but also means less state oversight of safety practices.

Texas permits autonomous vehicle testing through its Department of Motor Vehicles but does not restrict it to specific geographic zones. Tesla's Full Self-Driving beta operates on public roads across the state with a human driver who must remain attentive and ready to take control. Most other states either prohibit autonomous vehicle testing on public roads or require explicit case-by-case approval from the state transportation department.

What federal agencies are debating about safety and liability

NHTSA is developing rules for how autonomous vehicles should be tested, what data manufacturers must report, and how the agency will oversee recalls. The agency has issued guidance documents and held public hearings, but final regulations have not been published. One major unresolved question is whether autonomous vehicles should be held to the same safety standards as human-driven vehicles or to a different standard that accounts for their different failure modes—for example, a self-driving system might fail differently than a human driver would.

Liability is a separate and more contentious issue. If an autonomous vehicle causes a crash, who is responsible: the manufacturer, the operator, the vehicle owner, or the software company? Current law assumes the driver is responsible, but autonomous vehicles challenge that assumption. Some states are writing new liability rules; others are waiting for federal guidance. Insurance companies are experimenting with new policy structures, but there is no industry standard yet. This uncertainty affects whether manufacturers will deploy vehicles widely and how much insurance will cost.

The Federal Trade Commission (FTC) is also monitoring autonomous vehicle companies for deceptive marketing. Tesla has faced criticism for calling its system "Full Self-Driving" when it still requires human supervision, and the FTC has opened investigations into whether such claims mislead consumers. How regulators define what counts as "autonomous" or "self-driving" will shape what companies can claim about their products.

Recent changes to testing and deployment rules

In 2023 and 2024, several states expanded their autonomous vehicle programs. California increased the geographic zones where Waymo and Cruise can operate without a safety driver, though Cruise's expansion was paused after a series of incidents. Arizona has seen Waymo expand its robotaxi service to additional cities. Meanwhile, federal regulators have accelerated their timeline for writing rules, with NHTSA announcing plans to issue proposed regulations on autonomous vehicle safety by 2025.

One significant shift is that states are beginning to require more detailed incident reporting. California now requires operators to report collisions, near-misses, and disengagements (moments when the human safety driver had to take over). This data is meant to help regulators understand whether autonomous vehicles are safer than human drivers, though the metrics for comparison are still being debated. Some operators argue that comparing crash rates is unfair because autonomous vehicles operate in limited, controlled environments, while human drivers operate everywhere.

How insurance and ownership rules are changing

Insurance for autonomous vehicles is still evolving. Traditional auto insurance assumes the driver is responsible for the vehicle's actions, but autonomous vehicles shift some responsibility to the manufacturer and software provider. Some insurers are developing new policies that cover both the vehicle owner and the autonomous system operator. Others are waiting for clearer liability rules before offering coverage.

Ownership and registration rules also vary. In most states, you can own and register an autonomous vehicle like any other car, but you cannot legally operate it in fully autonomous mode on public roads unless you have a permit or live in a state that allows it. Some states are exploring whether autonomous vehicles should be registered differently or whether owners should be required to carry special insurance. These rules are expected to change as more vehicles enter the market.

What is expected to change in the next few years

Federal regulators have signaled that binding national standards for autonomous vehicles are coming. NHTSA is expected to propose rules on safety testing, cybersecurity, and data reporting by 2025 or 2026. These rules will likely set a floor for all states, though states may still impose stricter requirements. The rules will probably address how manufacturers must test autonomous systems, what safety data they must collect and report, and how the agency will oversee recalls.

Liability rules are also expected to shift. Several states are considering legislation that would limit manufacturer liability if an autonomous vehicle is operating as designed, similar to how aviation liability works. Other states are moving in the opposite direction, holding manufacturers responsible for ensuring their systems are safe. Federal legislation could eventually preempt state rules, but Congress has not yet moved on this issue.

The timeline for full autonomy—vehicles that can operate anywhere without human intervention—remains uncertain. Most experts expect limited autonomous operation (in specific cities or on specific road types) to expand over the next three to five years, while full autonomy remains a longer-term goal. Regulatory changes will likely follow deployment, not precede it, meaning rules will continue to shift as real-world data accumulates.

Frequently Asked Questions

Can I legally drive a fully autonomous vehicle on public roads where I live?

It depends on your state and city. California, Arizona, and parts of Texas allow driverless operation in specific zones under permits. Most other states require a human driver to remain in control or prohibit autonomous vehicle testing altogether. Check your state's Department of Transportation website or contact your local DMV to learn what is permitted in your area.

Who is responsible if an autonomous vehicle crashes into my car?

Liability rules are still being written. Currently, the vehicle owner or operator is usually held responsible, but this may change as courts and legislatures clarify whether manufacturers should bear liability for system failures. Your insurance company should be able to tell you how they handle claims involving autonomous vehicles, though policies vary widely.

Will federal rules override state rules for autonomous vehicles?

Probably, but not completely. Federal safety standards typically set a minimum floor, and states can impose stricter rules. So a federal rule might require certain safety tests, but California could require additional tests. Liability and insurance rules may remain state-specific unless Congress passes federal legislation.

How do regulators know if autonomous vehicles are actually safer than human drivers?

They are still figuring this out. States require incident reporting, but comparing crash rates is difficult because autonomous vehicles operate in limited areas and conditions while human drivers operate everywhere. Regulators are developing metrics and collecting data, but there is no consensus yet on how to measure safety fairly.

What happens if an autonomous vehicle is recalled?

NHTSA can order recalls just like for any other vehicle, but the recall process for software updates is faster and different from recalls for physical parts. Manufacturers can push software updates over the air without requiring owners to visit a service center. Rules for how often manufacturers must update autonomous systems and how quickly they must fix safety problems are still being developed.