Beijing has become the first Chinese city to launch dedicated commercial insurance for assisted and self-driving vehicles, signaling a strong push toward broader adoption of autonomous driving technologies.

Announced on Sunday by the Beijing Regulatory Bureau of the National Financial Regulatory Administration (NFRA), the insurance policies will be developed by the Insurance Association of China and offer differentiated coverage based on vehicle autonomy levels, covering Levels 2 to 4 of the six-level ranking system. Coverage for Level 2, partially automated vehicles — the most widely deployed form of automation currently — will be the most comprehensive, spanning self-driving hardware and software upgrades, which traditional car insurance policies currently lack.

Previously, limited insurance coverage for self-driving cars was available as an add-on to standard policies purchased through insurance companies or automakers. However, existing policies are largely based on human-driver scenarios, with limited coverage for system failures or cybersecurity risks, and do not always cover hardware, such as upgraded driver-assistance systems.

The policies will initially apply to new vehicles, allowing new car owners to choose between the new policies and existing auto insurance. A list of eligible models and automakers will be released in batches following evaluation. The move is expected to push automakers and insurers to upgrade their systems and enhance data-sharing mechanisms.

As for higher-level self-driving vehicles, the policies will only apply to those that have undergone testing or received road approval in Beijing in accordance with regulations. 

Experts applauded the move, describing existing self-driving car insurance as inadequate, with terms varying across automakers. 

“Currently, autonomous driving insurance is more like a fallback solution provided by automakers or autonomous driving system suppliers, rather than a true insurance product,” an industry insider told domestic media. “In essence, it resembles a corporate commitment. In the event of a major accident or if a company lacks the capacity to bear the costs, whether consumers can actually receive compensation remains uncertain.” 

Dedicated self-driving car insurance also carries potential legal benefits, according to officials.

“Prioritizing insurance in handling traffic accident disputes can help prevent automakers and developers from becoming entangled in large volumes of litigation … both constraining risks and supporting technological innovation,” a representative from the Beijing Regulatory Bureau of the NFRA told domestic media. 

Editor: Marianne Gunnarsson.

(Header image: VCG)