BYD announced in May 2026 that it will assume full financial liability for at-fault crashes occurring while its 'God's Eye' urban driving system is active in China. 

The terms 

The BYD cover applies if a driver uses BYD's urban 'navigate-on-autopilot' function in compliance with regulations and is at fault in a crash. It covers repairs to the owner's car, third-party property damage, and personal injury.

There is no payout cap, and owners do not need to purchase a separate product. God’s Eye B system is available for a one-off payment (it is not a subscription) and the coverage duration is one year. BYD says that it is a bundled guarantee, rather than a separately priced insurance product that applies only during the first year after buying a vehicle, or upgrading to the latest system version in China and that it does not replace regular insurance. BYD's guarantee does not cover every God's Eye function (only BYD’s urban 'navigate on autopilot'). 

Existing owners receive coverage once they update and BYD states it is not restricted to the first or registered owner of the vehicle. It applies to new buyers and existing owners who upgrade. 

The liability shift 

Traditionally the human operator carries the risk, and personal lines motor insurers bear the exposure. BYD's announcement disrupts that model.

Tesla's owner's manual says that the driver is responsible for the speed and control of the vehicle at all times, whether its Full Self-Driving (Supervised) is enabled or not. It is marketed as near-autonomous but when it fails, the liability is said to sit entirely with the human in the seat. Tesla recently refused a $60m settlement in relation to a fatal autopilot crash, fighting liability. However, it must now pay £243m following a judgment in Miami.

BYD has taken a different approach, contractually stepping in front of that liability (at least for a year). BYD has said that its decision demonstrates its confidence in it its own technology. BYD states it has a fleet of over 3.15 million intelligent vehicles on the road, logging over 124 million miles (200 million km) every day, providing extensive real-world data for algorithmic learning and improvement.

Key underwriting implications

1. Liability is migrating from motor to product lines: Where a God's Eye system is active and compliant use is established, the claim goes to BYD, and not the insured's motor policy. For personal lines underwriters, this reduces exposure on covered incidents during the guarantee period. 
2. The one-year window creates a coverage cliff: After 12 months, liability reverts. Underwriters should anticipate questions about what product is available to fill that gap and whether the motor policy will be expected to absorb it.
3. No payout cap is material: There is no cap on the payout under BYD's policy. For a serious personal injury claim, BYD's direct exposure could be substantial. This will test BYD's own reserving and reinsurance arrangements and sets a benchmark competitors may face pressure to match.
4. This is currently China only: The UK's Automated Vehicles Act is still being finalised through an ongoing programme of secondary legislation and regulatory frameworks. The UK is largely limited to Level 2 driver-assistance systems, with the driver legally required to maintain control at all times. However, BYD's announcement will accelerate the policy debate internationally.