BYD to cover self driving car crashes

By Ashley Morgan 02/06/2026 2 min read 69 views

BYD has announced it will cover damages, injuries, and legal costs if one of its self-driving cars crashes while using autonomous features. The move positions the Chinese automaker as the first global company to publicly commit to full financial responsibility for tech-related accidents involving its vehicles.

The guarantee applies only to cars in the company’s home market and lasts for one year. After that period, drivers will bear the costs of any collisions linked to autonomous systems. The offer covers upgrades to version 5.0 of the company’s software, which includes the God’s Eye system.

God’s Eye allows vehicles to park themselves without driver input, including an automated valet mode that lets the car find and occupy a spot unattended. The system also handles stop-and-go traffic, traffic lights, and intersections via its Urban Handle on Autopilot (NOA) function.

The company cites its vast data collection as a reason for confidence. Over 3.15 million vehicles worldwide use its intelligent driving software, generating 124 million miles of daily data. This feeds the company’s 5,000 engineers working on autonomous systems.

The company recently launched the Xuanji A3 chip, designed for Level 3 and Level 4 autonomous functions. This hardware supports the advanced capabilities of the system and future self-driving features.

Currently, the company has no plans to introduce Level 4 autonomy in the UK. Domestic regulations restrict vehicles to Level 2 functions, though exemptions exist for research trials. A new law set to take effect in 2026 may change this setting.

The company’s commitment to liability coverage highlights the ongoing debate over who is responsible for accidents involving autonomous vehicles. Other manufacturers have not yet made similar public pledges.

The company’s policy could influence industry standards, but its limited scope raises questions about long-term sustainability. The one-year window and geographic restrictions suggest the offer is a temporary test rather than a permanent solution.

Analysts note that while the move boosts consumer trust, it also exposes the company to significant financial risk. The company’s ability to maintain this policy will depend on the reliability of its systems and the frequency of incidents.

The Xuanji A3 chip is a critical component of the company’s strategy, enabling the processing power needed for complex autonomous tasks. Its performance will be closely watched as the technology evolves.

For now, the coverage remains a unique feature in the Chinese market. The company has not indicated plans to expand the policy globally or extend the one-year period.