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CA DOI: Driverless Carmakers Need $5 Million in Insurance

Driverless car makers need $5 million in insurance
October 12, 2016

A revised draft proposal from California’s Department of Motor Vehicles (DMV) requires manufacturers of autonomous vehicles to maintain $5 million in insurance, according to the California Department of Insurance. Specifically, the DMV proposal says in order for manufacturers to conduct autonomous vehicle testing on public roads in California, they must have $5 million to cover personal injury, death, or property damage.

This coverage must be in the form of either insurance, a surety bond, or a self-insurance certificate. Moreover, those owning or leasing them would have to have the insurance coverage required for all other vehicles. California Insurance Commissioner Dave Jones said he supports the latest draft of the rules that were originally issued in December 2015. He said that California needs to ensure that new technologies, products, and services are safe and consumers are protected.  “The new DMV regulations strike the right balance,” said Jones.

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