California Governor Gavin Newsom signed AB 2847 into law on Monday, establishing a presumption of manufacturer liability for personal injury claims arising from accidents involving fully autonomous vehicles — those operating in SAE Level 4 or Level 5 mode with no human driver actively controlling the vehicle.

The law, which takes effect January 1, 2027, represents a significant shift in how personal injury liability is assigned in autonomous vehicle crashes and is being closely watched by the industry as a potential national template.

What the Law Does

Under existing California law, personal injury claims in car accidents require plaintiffs to establish negligence. In crashes involving human drivers, this means proving the driver failed to meet a standard of reasonable care.

AB 2847 creates a strict liability standard for AV manufacturers: when a vehicle is operating in fully autonomous mode and causes an accident, the manufacturer is presumed liable without the injured party needing to prove negligence. The manufacturer can rebut this presumption only by demonstrating the accident was caused entirely by an unforeseeable third party or an act of God.

Industry Response

Waymo, Cruise, and Tesla all opposed the bill, arguing it would “chill innovation” and create “an uninsurable liability environment.” The California Chamber of Commerce labeled it a “job killer bill” during committee hearings.

Plaintiff attorneys and consumer safety advocates supported the measure. “When a human decides to get behind the wheel, they accept responsibility,” said Chris Nakamura of the Consumer Attorneys of California. “When a company deploys an algorithm to replace human judgment, the company accepts that responsibility.”

Implications for Injury Claims

For accident victims, the law simplifies what has been an extremely difficult legal landscape. Several pending California cases involving Waymo and Cruise vehicles have stalled because plaintiffs struggled to prove exactly what algorithmic decision caused a crash — a question requiring expensive expert testimony and discovery battles over proprietary source code.

Under AB 2847, victims of AV crashes will be able to seek compensation without clearing that hurdle.