Automakers Diverge on Liability Models Amid Rise of ADAS

As advanced driver-assistance systems (ADAS) enter the phase of large-scale deployment, the issue of liability allocation in accidents has become increasingly prominent. In May 2024, BYD announced a one-year "city NOA safety guarantee" for users of vehicles equipped with its "God’s Eye" A and B systems. Under this policy, if a traffic accident occurs while the user is compliantly using the CNOA city navigation feature and the vehicle is deemed at fault, BYD will fully cover all associated economic losses. This benefit is provided free of charge, has no payout cap, does not affect the user’s commercial insurance premium in the following year, and requires no claim filing by the user—compensation is paid directly by the company. Prior to this, several automakers had already launched intelligent driving protection services in collaboration with insurance providers. Brands such as Harmony Intelligent Mobility, Xiaomi, and XPeng offer “intelligent driving insurance” or similar benefits. One month after BYD’s announcement, Yinwang Technology adjusted the pricing of Huawei’s Qiankun ADS Advanced Package and simultaneously extended the coverage duration and increased the payout limit of its “Intelligent Driving Peace of Mind” benefit. Currently, industry-wide protection mechanisms fall into two main categories: The first involves “intelligent driving insurance” products jointly offered by automakers and insurers, typically linked to compulsory traffic insurance or commercial auto policies. These usually have payout caps and may not cover increased premiums or vehicle depreciation losses; they often require users to purchase them separately or receive them bundled with feature packages. The second model, exemplified by BYD, is direct compensation by the manufacturer. This benefit comes standard with the vehicle, operates independently of the traditional insurance system, carries no payout cap, and does not impact insurance premiums. As the usage frequency of ADAS rises, consumers are paying closer attention to accident risks, liability determination, and loss coverage. The competition in intelligent driving is shifting from a focus on technical capabilities to the establishment of robust liability frameworks. Going forward, users will care not only about the functionality itself but also whether companies have built clear, credible, and enforceable responsibility commitment systems.