The Risks of Self-Driving Vehicles

January 15, 2025

The rapid rise of self-driving vehicles is reshaping the transportation landscape, bringing both opportunities and challenges for parking operations. As autonomous technology becomes more prevalent, valet services and garages must adapt to new complexities in managing these vehicles. This evolution introduces emerging risks that traditional parking models may not be equipped to handle, raising important questions about safety, liability, and operational readiness.

In this article, we explore some of the emerging liabilities associated with self-driving vehicles and the role of parking operations insurance to protect against losses. To learn more about insurance solutions for garages and valet operations, visit the ArmorPark page.

Liabilities Associated with Self-Driving Vehicle Technology

It’s no surprise that self-driving vehicle technology is already transforming how we travel in America’s cities. As this technology continues to mature, it has come with “road bumps,” or unexpected/unforeseen risks. These risks include:

Increased Complexity in Handling Autonomous Vehicles

• Valet Services: Valet drivers may lack training to handle autonomous vehicles effectively. Missteps in operating or parking these vehicles could lead to damages or accidents.
• Garages: Autonomous vehicles often rely on precise markings, signage, and maps, which may not align with older or poorly maintained parking facilities.

Liability in Case of Malfunction

• Self-driving vehicles could misinterpret commands or fail to navigate complex parking environments, causing accidents.
• Parking operators may face disputes over whether the malfunction was due to the vehicle itself or the environment provided by the parking operator.

Cybersecurity Risks

• Autonomous vehicles often communicate with parking infrastructure via smart parking systems, creating new vulnerabilities to hacking or data breaches.

Legal and Insurance Challenges

• Current insurance policies may not fully address the complexities of autonomous vehicle incidents, leaving parking operators exposed to potential lawsuits.
• Liability questions: Who is responsible if an autonomous vehicle causes damage—a valet, the garage, the vehicle manufacturer, or the software provider?

Ethical and Customer Service Implications

• Customers may hold parking operators accountable for not adequately understanding or managing self-driving technology.
• Parking operations (garages and valet services) may be on the hook for significant financial losses if a customer’s vehicle was damaged through actions, inaction, or poor management of the self-driving technology.

Solutions to Protect Parking Operations from Liabilities

In addition to insurance programs for parking and valet services, parking operations companies can take several proactive steps to protect themselves against the emerging risks associated with self-driving vehicles:

Enhance Employee Training

• Specialized Training: Train staff to understand and handle self-driving vehicles safely, including activating and deactivating autonomous parking features.
• Technology Familiarity: Provide regular updates and workshops on new advancements in autonomous vehicle technology.
• Emergency Protocols: Establish clear procedures for addressing malfunctions or unexpected behavior in autonomous vehicles.

Upgrade Parking Infrastructure

• Technology-Ready Facilities: Invest in modern parking systems compatible with autonomous vehicle technology, such as advanced signage, precise lane markings, and smart parking sensors.
• Vehicle-to-Infrastructure (V2I) Systems: Install communication systems that allow self-driving vehicles to interact seamlessly with parking facilities for guidance and updates.
• Security Measures: Strengthen cybersecurity for any connected infrastructure to prevent hacking or breaches.

Revise Insurance Coverage

• Policy Updates: Work with insurance providers to ensure coverage extends to risks specific to autonomous vehicles, such as software malfunctions or cybersecurity breaches.
• Garage Keepers Liability Insurance: Review and adjust limits to account for high-tech vehicles, which often carry higher repair costs.
• Cyber Liability Insurance: Add coverage to protect against losses stemming from cyberattacks on vehicle systems or parking infrastructure.

Working with an experienced insurance underwriter can help parking operations secure the coverages and plans needed to protect against expected and unforeseen risks, including those brought about by self-driving vehicle technologies.

Adopt Risk Mitigation Strategies

• Pre-Check Protocols: Require customers to disclose the autonomous capabilities of their vehicles and verify that the systems are in proper working order.
• Designated Autonomous Areas: Create specialized zones within garages for autonomous vehicle parking to minimize the risk of accidents and streamline operations.
• Incident Response Plans: Develop and implement protocols for managing accidents or disputes involving self-driving vehicles.

By combining technology upgrades, employee education, robust insurance policies, and strategic partnerships, parking operators can mitigate the emerging risks of self-driving vehicles while positioning themselves as leaders in a rapidly evolving industry. ◼