Federal regulators are moving toward clearer safety standards, but rules still vary sharply by state and city

The National Highway Traffic Safety Administration (NHTSA) has been working on a framework for autonomous vehicle testing and deployment since 2020, but no single federal standard exists yet. Instead, California, Arizona, Texas, and a handful of other states have created their own rules—some permitting limited driverless operation on public roads, others requiring a human safety driver present. This patchwork means a self-driving car legal in San Francisco may not be legal in Phoenix, and rules that explore today can shift within months.

The most recent movement has been toward requiring manufacturers to report crashes and safety data to NHTSA, and toward clearer definitions of what "autonomous" actually means in legal terms. Waymo and Cruise have both faced restrictions after accidents, and those incidents have pushed regulators to tighten oversight rather than loosen it. If you are tracking this for a purchase decision or investment, the key point is that the regulatory environment is still unsettled and will likely remain so for the next two to three years.

Key Takeaways

  • No federal rule currently governs autonomous vehicle testing or operation; instead, California, Arizona, Texas, and other states set their own standards, which means rules differ by location.
  • NHTSA is developing a safety framework and now requires manufacturers to report crashes and safety data, but this framework is not yet final.
  • Recent accidents involving Waymo and Cruise have led to stricter oversight and temporary restrictions on driverless operation in some cities.
  • Rules can change within months, so any autonomous vehicle service available in your area today may face new restrictions or requirements next year.

How NHTSA is building a federal framework

The National Highway Traffic Safety Administration has been developing guidance documents and safety standards since 2016, but these are not yet binding regulations. In 2023 and 2024, NHTSA began requiring manufacturers to submit safety data and crash reports through a new reporting system, which gives the agency visibility into how autonomous vehicles perform in real-world conditions. This data collection is the foundation for any future federal rule.

The challenge is that NHTSA must define what "autonomous" means legally before it can set safety standards. A car with lane-keeping information is not the same as a car that can navigate city streets without a human driver, but the law has not yet drawn that line clearly. Until NHTSA publishes a final rule—which could take another year or more—manufacturers operate under state rules and NHTSA's existing authority to recall unsafe vehicles.

State-by-state rules: where driverless cars are actually operating

California permits driverless operation in limited areas through permits issued by the Department of Motor Vehicles. Waymo and Cruise both hold these permits, though Cruise's was restricted after a series of incidents in 2023 and 2024. Waymo operates a paid robotaxi service in San Francisco and has expanded testing in other cities, but only within geofenced zones and under specific conditions.

Arizona allows autonomous vehicle testing with fewer restrictions than California, and Waymo operates a driverless service in parts of Phoenix and Chandler. Texas has been more permissive, allowing testing on public roads with minimal oversight, though this is beginning to change as the state develops formal rules. Nevada, Florida, and Washington state have also issued permits, but the scope and conditions vary widely. If you live in or travel to one of these states, check your city or county website for current rules about where driverless vehicles operate.

What changed after the Waymo and Cruise incidents

In 2023 and early 2024, Cruise vehicles were involved in several accidents, including one where a driverless car struck a pedestrian. California's DMV suspended Cruise's driverless permit in October 2023, and the company has since faced additional restrictions. Waymo has had fewer high-profile incidents, but both companies now face closer scrutiny from regulators and the public.

These incidents accelerated NHTSA's push for mandatory safety reporting and led California to tighten its permitting process. The takeaway for consumers is that regulators are willing to restrict or revoke permits when safety concerns emerge, which means any autonomous vehicle service you use today could face new rules or temporary suspension. This is not necessarily a sign that the technology is unsafe—it is a sign that regulators are treating autonomous vehicles as a new category that requires oversight as it develops.

How cities are controlling where autonomous vehicles can operate

Even within states that permit autonomous vehicles, individual cities can impose additional restrictions. San Francisco has geofenced zones where driverless cars can operate, and the city can require permits or impose speed limits specific to autonomous vehicles. Some cities have banned them entirely or required a human safety driver to be present.

This city-level control exists because autonomous vehicles affect local traffic, emergency response, and public safety in ways that vary by neighborhood. A driverless car operating in a dense urban area with heavy pedestrian traffic faces different challenges than one on a suburban highway. If you are considering buying a home or business in an area where autonomous vehicle services operate, check your city's current rules and any pending changes to local ordinances.

What manufacturers must report to regulators now

NHTSA's new reporting requirements mean that Waymo, Cruise, and other manufacturers must submit data on crashes, near-misses, and safety performance. This information is not yet public in real-time, but NHTSA uses it to identify patterns and decide whether to open investigations or issue recalls. The data collection also helps NHTSA build the evidence base for future federal rules.

These reports include details about the vehicle's behavior, the conditions at the time of the incident, and whether the autonomous system or a human driver was in control. Over time, this data will show which manufacturers have better safety records and which systems are more prone to failure in specific conditions. For consumers, this means regulators have more visibility into autonomous vehicle safety than they did two years ago, though the data remains largely confidential during investigations.

What to expect in the next two years

NHTSA is expected to publish more detailed guidance or proposed rules in 2024 and 2025, though the timeline remains uncertain. These rules will likely address vehicle-to-infrastructure communication, cybersecurity, and minimum safety performance standards. States may also harmonize their rules to align with federal guidance, which would reduce the current patchwork.

In the near term, expect more restrictions on driverless operation in cities where incidents occur, and expect manufacturers to invest heavily in safety improvements and data transparency to maintain their permits. The regulatory environment will continue to shift, so if you are tracking autonomous vehicles for any reason—whether you are considering using a robotaxi service, investing in the technology, or straightforward curious about what is legal in your area—check your state and local government websites for the most current rules.

Frequently Asked Questions

Can I use a driverless car service in my city right now?

Only if you live in or near San Francisco, Phoenix, Chandler, Las Vegas, or a few other cities where Waymo or similar services operate. Check your city's website or search for "autonomous vehicle services near me" to see what is available in your area. Rules change frequently, so current availability does not mean the service will remain available next year.

What happens if an autonomous vehicle hits my car?

The manufacturer's insurance typically covers the damage, just as a human driver's insurance would. Report the incident to local police and get the vehicle's information. The manufacturer will be liable for damages if the autonomous system was at fault, though liability disputes can be complex when a human safety driver was present.

Are self-driving cars safer than human drivers?

The data is still limited. Waymo and Cruise have logged millions of miles with relatively few serious incidents, but human drivers have been operating for over a century, so the comparison is not straightforward. NHTSA is collecting data to answer this question, but a definitive answer will take several more years.

Will autonomous vehicles be legal everywhere soon?

Probably not everywhere at once. Federal rules will likely set minimum safety standards, but states and cities will retain the power to restrict or ban autonomous vehicles in their jurisdictions. Some rural areas may see driverless trucks before cities allow driverless taxis, because the safety and traffic challenges are different.

How do I find out what the rules are in my state?

Start with your state's Department of Motor Vehicles website, which usually has a page on autonomous vehicles. Your city or county may also have rules posted. NHTSA's website has a summary of state-level rules, though it updates slowly, so local government sources are usually more current.