BYD puts crash bill on itself in China, highlighting the liability fight Tesla is still having in court

A new pledge from BYD is turning a familiar self-driving-era question into a competitive differentiator, not just a courtroom argument. On May 28 in Shenzhen, the Chinese automaker said it would pay for the cost of at-fault accidents that occur while its “God’s Eye” urban navigation feature is driving, a promise that BYD framed as confidence in its assisted-driving technology and as a “safety net” for owners in China.

The policy targets a key gray zone in today’s driver-assistance systems. Most vehicles sold with features like lane keeping, braking, and automated parking still fall under Level 2 automation, which means the driver must supervise at all times. In that setup, companies often market the systems as capable of handling complex driving tasks, while the legal fine print and vehicle documentation keep responsibility with the person behind the wheel. That gap has helped fill court calendars, according to the reporting.

Tesla has become the emblem of that dispute. TheStreet described Tesla’s position as consistent: even with Autopilot or Full Self-Driving (Supervised) engaged, Tesla’s paperwork and manuals treat the driver as ultimately liable. That stance has repeatedly faced challenges from families who argued the company’s software should bear more responsibility after crashes.

One of the most prominent cases involves a 2019 fatal crash in Florida. A jury ordered Tesla to pay about $243 million after a Model S running Autopilot struck a parked vehicle and killed a young woman, the article said, noting Tesla argued the suit was built on a “fiction concocted” by plaintiffs’ lawyers. The report adds that a federal judge upheld the award in February 2026 while Tesla appeals.

Regulators have also stayed focused on Tesla’s “Full Self-Driving” claims. The article said the National Highway Traffic Safety Administration opened an investigation in October 2025 covering more than 2.8 million Teslas equipped with Full Self-Driving. Tesla’s own owner documentation continues to emphasize that these systems are not full autonomy. In Tesla’s Model Y owner’s manual, the company states that Full Self-Driving (Supervised) does not make the vehicle autonomous and requires a fully attentive driver ready to take immediate action at all times.

BYD’s pledge flips the default expectation by attaching costs to the moment its system is driving. The report says BYD’s terms are unusually broad on liability, including no payout cap, no requirement that drivers buy a separate insurance product, and a claim that will not raise a driver’s premium the next year. It also says coverage runs for one year, applies to specific “God’s Eye A and B” systems, and can follow the car to subsequent owners after an over-the-air software update.

Even with the bold framing, the promise has boundaries that matter. The report cautions that BYD’s coverage applies only in China, only for a year, and only when the system is used within the rules, leaving room for BYD to argue about proper use. For Tesla, the company’s immediate path remains tied to ongoing appeals in the major verdict and to the outcome of regulators’ investigations. Investors and competitors will likely watch whether BYD extends the offer beyond China and whether other automakers copy the “pay when it fails” model instead of sticking with “driver is responsible” documentation.