Subrogation Practice Areas

Self-Driving Cars Will Transform the Auto Insurance & Subrogation Industry

With the advent of computer-controlled automobiles and the more recent development of intuitive driving technology, in just 70 years we have gone from simple cruise control to cars that swerve or brake for you in order to avoid obstacles. And as this autonomous auto technology continues to rapidly develop, the judicial field is working on the fly at how the myriad new factors involved in self-driving vehicles will be dealt with in insurance and subrogation.

Semi-autonomous vehicles are already on the road, with many car manufacturers working diligently on creating viable autonomous vehicles for widespread public use. Projections infer that a complete switch to autonomous vehicles could reduce accident incidents by up to 90% by eliminating the subjectivity of people – factors like fatigue, distraction, road rage, substance-induced impairment, and medical emergencies. The potential benefits are myriad. But so are the legal implications regarding liability.

Autonomous Vehicles Pose New Questions for the Insurance Industry

The future is here and self-driving vehicles are on the road! Despite the utopian prospect of fewer automotive collisions by eliminating human error, car accidents are still bound to occur. And, unfortunately, while the number of minor accidents will likely decrease exponentially, accidents that continue to occur are likely to be larger, involving more vehicles, more parties, and more room for mistakes in subrogation pursuit.

Retaining subrogating counsel that stays at the forefront of these developments will be key, as countless questions will arise. For instance:

• If the vehicle is completely autonomous, can the operator ever truly be at-fault? I.e. If the driver falls asleep and the vehicle is in an accident, where does the liability lie?
• If there is something wrong with the vehicle that caused the accident, which manufacturer is at-fault? The car itself? The navigation system? The sensors or AI software?
• If the car is semi-autonomous, what level of liability lies with the driver vs the vehicle? And how does that play out in established principles like contribution between carriers or contribution between tortfeasors?

Compound possible issues like these when you consider that the first fully-autonomous vehicles will likely be commercial, as well as the inevitability of rental car companies offering self-driving cars as an option. Add in the dearth of case law and statutes surrounding autonomous vehicles and you have the perfect recipe for a subrogation claim so complicated it seems a better idea to take a total loss.

However, with the right law firm, you can maximize your chances of recovery with a second look at these difficult claims. You just need subrogation professionals who tirelessly advocate for insurers’ rights to recover losses via subrogation.

Determining the Best Route to Pursue Subrogation After an Autonomous Auto Accident

Here is where things get even trickier for carriers trying to recover losses as well as the subrogation attorneys trying to help them accomplish that. Where the human driver used to be the clear tortfeasor in claims such as accidents caused by running a red light, now we have to take into account the ratio of control the human vs the car had in running that red light before we decide who to pursue and how to do it.

Consider the court’s focus in judgments on liability: which party, if their actions had been corrected, had the least cost and the highest chance of preventing the accident? Where the driver used to be the answer the majority of the time, vehicles with higher levels of or complete autonomy will often make the manufacturer the answer a majority of the time.

The possibility for liable parties to proliferate as each tries to shrug responsibility to another has the potential to overwhelm the insurance industry, creating huge problems for carriers and insureds alike. Interestingly, one of the most salient analogies that can help theorize responsibility in an accident involving autonomous vehicles comes from before there were cars at all. David King, in his book Putting the Reins on Autonomous Vehicle Liability, likens self-driving cars to horses. Think about it:

• Both a horse and a self-driving car have the ability to perceive their environment.
• Both have the ability to make maneuvers outside of the human operator’s control.
• Both have the ability to misunderstand environmental stimuli.
• Both have the ability to misunderstand operator commands.

With a near-complete absence of case law or state statutes regulating autonomous vehicles, creative theorizing may prove an effective way to augment an argument for liability in such subrogation claims. Eventually, the law will catch up. But until then, the weight is on the shoulders of the insurance and subrogation industries in how accident losses are resolved.

Why Autonomous Vehicles Are Nothing Like Standard Automotive Subrogation

While the niche area of law subrogation professionals work within is complex, there are certain things about standard motor vehicle subrogation that are standard. States have had decades to set case precedent and statute determining how broad and even very specific factors in auto subrogation are handled. This is not the case for driverless vehicles, and that is largely what makes this type of auto subrogation so difficult.

The novelty complication in autonomous vehicle subrogation is three-fold:

• Virtually no case precedent
• Constantly-changing technology
• Difficulty in determining fault

This means that a subrogating carrier requires a law firm proficient in:

• Thorough investigations that cover all possible responsible parties
• The latest industry technology in terms of legal procedure
• The latest precedent cases and laws involving autonomous vehicles on the road
• Identifying any out-of-court routes to resolving the subrogated matter
• Navigating the specific legal/political climate of the jurisdiction in which the subrogation suit is filed, with regard to driverless vehicles on the road

Skilled Case Management for Subrogation Claims Involving Autonomous Vehicles

Self-driving vehicles are an emerging reality, and the transition will have far reaching effects across society – not just the subrogation industry. Though, how our industry proceeds will almost definitely play a role in how the technology and use continues to develop, as liability insurance is a major factor in any entity involved in building and distributing vehicles.

Determining fault will increase the complexity of subrogated legal claims, as car manufacturers will carry a greater responsibility for causation of automobile accidents in insurance claims. In turn, the complexity of the production process for these vehicles will often present more possible parties to pursue in auto subrogation claims.

Autonomous vehicles add additional challenges to traditional auto subrogation including understanding who to pursue and evidence preservation. Rathbone Group knows that possible tortfeasors for autonomous vehicle subrogation claims involve owners of fleet vehicles, car manufacturers, computer coders, and other vehicles in the collision.

Evidence Preservation is Key to Pursuing Subrogation of Self-Driving Vehicles

Rathbone Group understands the importance of evidence preservation in autonomous vehicle claims as well. While multiple cameras exist in autonomous vehicles, the recordings can be overwritten automatically after a certain time passes. Our experience with spoliation claims is also an asset when subrogating autonomous vehicle claims.

Both Legal and Technological Knowledge Support Autonomous Vehicle Subrogation

Rathbone Group has the legal know-how and technological sophistication to pursue recovery for losses in the new age of autonomous automobiles and trucks on the road. Our dedicated team of lawyers, claims adjusters, specialists, and other subrogation professionals provide comprehensive competence in conducting thorough investigations, keeping apprised of the latest state subrogation laws, creative approaches to pre-suit claims resolution, and more. No matter how fast-changing the industry, Rathbone Group can help clients successfully navigate the subrogation process for autonomous vehicle incidents, maximizing your potential for recovery while minimizing the cost of pursuing it.

Contact Rathbone Group