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<reference>
Automated and Electric Vehicles Act 2018

An Act to make provision about automated vehicles and electric vehicles.

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Automated and Electric Vehicles Act 2018
You are here:
UK Public General Acts
2018 c. 18

PART 1

Section 2
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Changes over time for: Section 2
Alternative versions:
21/04/2021
- Amendment
Changes to legislation:
Automated and Electric Vehicles Act 2018, Section 2 is up to date with all changes known to be in force on or before 16 September 2026. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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s. 2
heading word inserted by
2024 c. 10

Sch. 2
para. 5(3)(a)
s. 2(1)(a)
word inserted by
2024 c. 10

Sch. 2
para. 5(3)(a)
s. 2(1)(b)
words substituted by
2024 c. 10

Sch. 2
para. 5(4)(a)
s. 2(2)(a)
word inserted by
2024 c. 10

Sch. 2
para. 5(3)(a)
s. 2(2)(b)
words substituted by
2024 c. 10

Sch. 2
para. 5(4)(b)
s. 2(3)(a)
word inserted by
2024 c. 10

Sch. 2
para. 5(3)(a)
s. 2(3)(c)(ii)
word inserted by
2024 c. 10

Sch. 2
para. 5(3)(a)
s. 2(4)
word inserted by
2024 c. 10

Sch. 2
para. 5(3)(a)
s. 8(1)
(1A)
substituted for s. 8(1) by
2024 c. 10

Sch. 2
para. 5(6)(a)
s. 10(5)
-
(8)
inserted by
2025 c. 34

s. 50
s. 12(7)(b)
(ia)
inserted by
2023 c. 55

Sch. 4
para. 218(2)(b)
Changes and effects yet to be applied to the whole Act associated Parts and Chapters:
Whole provisions yet to be inserted into this Act (including any effects on those provisions):
s. 8(1)
(1A)
substituted for s. 8(1) by
2024 c. 10

Sch. 2
para. 5(6)(a)
s. 10(5)
-
(8)
inserted by
2025 c. 34

s. 50
s. 12(7)(b)
(ia)
inserted by
2023 c. 55

Sch. 4
para. 218(2)(b)
2
Liability of insurers etc where accident caused by automated vehicle
E+W+S
This section has no associated Explanatory Notes
(1)
Where—

(a)
an accident is caused by an automated vehicle when driving itself on a road or other public place in Great Britain,

(b)
the vehicle is insured at the time of the accident, and

(c)
an insured person or any other person suffers damage as a result of the accident,

the insurer is liable for that damage.
(2)
Where—

(a)
an accident is caused by an automated vehicle when driving itself on a road or other public place in Great Britain,

(b)
the vehicle is not insured at the time of the accident,

(c)
section 143 of the Road Traffic Act 1988 (users of motor vehicles to be insured or secured against third-party risks) does not apply to the vehicle at that time—

(i)
because of section 144(2) of that Act (exemption for public bodies etc), or

(ii)
because the vehicle is in the public service of the Crown, and

(d)
a person suffers damage as a result of the accident,

the owner of the vehicle is liable for that damage.
(3)
In this Part “
damage
” means death or personal injury, and any damage to property other than—

(a)
the automated vehicle,

(b)
goods carried for hire or reward in or on that vehicle or in or on any trailer (whether or not coupled) drawn by it, or

(c)
property in the custody, or under the control, of—

(i)
the insured person (where subsection (1) applies), or

(ii)
the person in charge of the automated vehicle at the time of the accident (where subsection (2) applies).

(4)
In respect of damage to property caused by, or arising out of, any one accident involving an automated vehicle, the amount of the liability under this section of the insurer or owner of the vehicle is limited to the amount for the time being specified in section 145(4)(b) of the Road Traffic Act 1988 (limit on compulsory insurance for property damage).

(5)
This section has effect subject to section 3.

(6)
Except as provided by section 4, liability under this section may not be limited or excluded by a term of an insurance policy or in any other way.

(7)
The imposition by this section of liability on the insurer or vehicle owner does not affect any other person's liability in respect of the accident.

Commencement Information
I1
S. 2
in force at 21.4.2021 by
S.I. 2021/396
,
reg. 3(a)
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</reference>

<statements>
1. EU, UK, and German statutes supply separate mechanisms: product liability for software and updates, insurance channels for automated vehicles, and driver-duty rules for conditional automation.
2. The UK Automated and Electric Vehicles Act 2018 is the clearest existing statutory allocation rule in the evidence pool for automated vehicles. Section 2 provides that where an accident is caused by an automated vehicle when driving itself on a road or other public place in Great Britain, the vehicle is insured, and an insured person or any other person suffers damage, the insurer is liable for that damage
3. If the vehicle is uninsured but exempt from the ordinary insurance duty because it is a public-body or Crown vehicle, the owner is liable
4. “Damage” includes death or personal injury and property damage, with exclusions for the automated vehicle itself, goods carried for hire or reward, and property in the custody or control of the insured person or person in charge
5. Property damage is capped by reference to the Road Traffic Act 1988 limit, and liability under the section cannot be limited or excluded by policy terms except as provided by Section 4
6. Importantly, Section 2(7) states that imposing liability on the insurer or vehicle owner does not affect any other person’s liability in respect of the accident
7. The UK regime therefore uses insurance law to enforce update behavior and to channel first-instance compensation while preserving recourse and other liability routes
8. The AEVA text available in the evidence is marked as up to date with changes known to be in force on or before 13 September 2026, but also shows amendment markers not yet applied to the text, including changes from 2024 and 2025 legislation
9. German §1b driver duty; UK AEVA if automated vehicle is driving itself
10. German Act on Autonomous Driving L4 regime; UK AEVA channel for automated vehicle driving itself
11. The UK AEVA creates a different logic: the insurer pays first when an automated vehicle causes an accident while driving itself, but the person in charge can be denied the strict channel if the accident was wholly due to their negligence in allowing the vehicle to begin driving itself when inappropriate.
12. The UK model is instructive: an insurer-first channel removes the injured party’s need to prove whether the cause was human or machine at the first stage, while preserving contributory negligence, user-fault exceptions, and recourse
13. The UK channels first-instance compensation through insurance while preserving user-fault and update-based recourse
</statements>

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