How Self-Driving Cars and Crash Prevention Systems Will Affect Small Law Firms That Handle Car Accident Cases

Self-driving cars, crash prevention systems and increased car safety technologies are on the brink of transforming both the automotive industry, and the legal industry for those involved in insurance law and personal injury law. North Carolina car accident lawyer Carl Nagle suggests that young lawyers steer clear of the auto personal injury arena, as the advances in vehicle safety should reduce injuries, reduce the number of accidents, and decrease the number of personal injury claims and lawsuits arising from roadway collisions. According to attorney Nagle, “young lawyers who are choosing their career path should steer away from motor vehicle injury law due to the expected reduction in accidents and injuries arising from roadway crashes.”

Here are several ways that advanced auto design technology will reshape the legal landscape for small firms specializing in car accident law.

1. Reduction in Accident Frequency and Severity

Self-driving cars are designed to foresee dangers and avoid crashes.  Crash prevention systems, such as automatic braking, lane-keeping assistance, and blind-spot monitoring, are designed to reduce human error, the leading cause of traffic accidents. The National Highway Traffic Safety Administration’s (NHTSA) research confirms that over 90% of motor vehicle accidents occur due to human error.  Thus, with proper design and function, self-driving cars and crash prevention systems should dramatically decrease the number of accidents, and the number of crash-related injuries and fatalities.

For small law firms that mainly handle legal claims arising from car accidents, the reduction in accidents will lead to fewer clients seeking representation. Crash prevention systems will not only prevent accidents, but also minimize their severity. This means that even in cases where accidents do occur, injuries may be less severe, resulting in smaller settlements and a reduced number of crash-related personal injury claims. As accident rates drop, firms specializing in this type of case may need see a reduction in business, and a need to adapt their business models to account for reduced demand.

2. Changing Nature of Liability and Case Complexity

While self-driving cars and crash safety systems may decrease the number of accidents, the new technology will also bring forward new legal complexities. When autonomous vehicles are involved in accidents, the question of liability becomes less straightforward. Rather than focusing on driver negligence, the evaluation of causation and liability will now include a focus on the conduct of manufacturers, software developers, and component suppliers. For instance, if a software design flaw or malfunction causes an accident, the fault could lie with the software developer or the car manufacturer rather than one of the involved drivers.

This shift from driver fault and liability to corporate liability and product defect analysis will make car accident cases more complex, involving technical analyses and expert testimony related to vehicle design, manufacturing defects, and careful analysis of the function of software, sensors, and other vehicle components. Smaller law firms that handle car accident cases may face a steep learning curve to navigate these issues effectively. Moreover, the cost of handling these cases may increase due to the need for product design experts, manufacturing experts, and experts in software engineering, etc. Law firms will have to adapt quickly by building new relationships with products liability experts, engineers and other experts who have specialized training to handle these evolving challenges.

3. Potential Decline in Insurance Claims and Personal Injury Cases

As self-driving cars and other accident prevention/safety technology advances, insurance companies are likely to adjust their claims-handling policies to profit from the lower risk of injuries associated with AVs. Many insurance companies already offer reduced premiums for vehicles equipped with crash prevention systems such as anti-lock braking, automatic braking, airbags, daytime running lights and other safety features. Over time, widespread adoption of self-driving cars should result in fewer personal injury claims, a decline in the overall number of car accident cases, and a reduced volume of liability insurance claims.

For small law firms, this trend likely will cause a significant decrease in client volume, particularly for firms that focus on smaller geographic market areas and routine accident cases. Additionally, as car manufacturers and tech companies become more commonly involved in car accident claims, they may push for arbitration or other alternative dispute resolution programs that bypass traditional litigation and jury trials for collision cases. Small personal injury law firms may need to explore alternative practice areas or consider diversifying their services to maintain profitability.

4. Changes in Legal Practice and Potential for New Types of Cases

While some areas of traditional car accident claims handling and litigation may see declines, the increasing use self-driving cars will also open up new areas of legal practice. As noted above, small law firms could find increased opportunities in legal arenas like product liability, cybersecurity, data privacy, and class-action lawsuits. Similarly, as self-driving technology evolves, there may be new regulatory standards and compliance requirements for auto makers and software developers. Law firms with the ability to adapt and learn could pivot towards representing clients in regulatory compliance cases, advocating for consumer rights, or litigating product liability cases when self-driving technology fails. Small firms that currently handle traditional personal injury law could develop this expertise and transition into these emerging fields.

5. Increased Role of Large Firms on Both Sides of Injury Cases

Small firms who handle injury claims in self-driving car cases should expect opposition coming from multiple parties and large law firms who represent car makers. Given the complexities surrounding autonomous vehicle cases, large law firms with greater resources may become dominant players in AV-related litigation, especially if cases involve extensive technical analysis and high-profile corporations. Small firms may find it challenging to compete if they lack the resources to meet large-firm opposition in these complex and expensive cases. Thus, we may see a shift toward large firms assisting injury victims, as well as defending car makers and others involved in the design and manufacture of self-driving cars and crash prevention systems.

6. Diversification and Adapting to New Areas of Practice

To react to reduced opportunity resulting from a decline in viable auto accident cases, small law firms must consider diversifying into related fields of law, or other practice areas entirely. For example, to remain in the personal injury arena, they could expand their services to include premises liability, dog bite, assault and battery claims, workplace injury cases, disability cases, or general personal injury cases unrelated to auto accidents. This diversification could help them offset any losses in car accident litigation while allowing them to still profit from their expertise in handling personal injury claims.

Small firms would also be wise to invest in the training and development of attorneys who can handle the legal challenges associated with handling cases involving self-driving cars. By remaining proactive and adapting to these new areas, small law firms can establish a niche in the market and position themselves as go-to resources for complex litigation in cases involving self-driving cars and failures in crash prevention technologies.

Change is Imminent

The increasing presence of self-driving cars and crash prevention systems will certainly have a huge impact on small law firms that specialize in handling conventional car accident cases. While these technologic advances promise to enhance traffic safety and reduce the incidence of accidents and injuries, they also present new challenges and opportunities for car accident lawyers. Small law firms that proactively adapt to these changes—by learning more about these technologies, exploring new areas of legal practice, and developing expertise in product liability law—will be better positioned to thrive in a landscape that is increasingly populated by safer vehicles and self-driving cars. The law firms that remain agile and forward-thinking will be best-prepared to survive and grow in the age of self-driving vehicles.