Liability and Insurance Implications of IVHS Technology

Intelligent Vehicle-Highway Systems (IVHS) may change the character of automobile accidents and of automobile accident lawsuits in the United States. Successful implementation of IVHS technology will require significant capital investment by manufacturers and highway departments. Investment may be deterred by concern about potential legal liability and the cost of liability insurance. Liability and insurance experience with other pathbreaking technologies -- commercial air transportation, nuclear power, and satellites -- suggests that the liability risks of advanced stages of IVHS technology should be managed through federal or state legislation.