Insurance and Oversight for Automated Haulers

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Ontario Regulation 161/25 establishes a decade-long pilot project under the Highway Traffic Act to evaluate the safe use and integration of automated commercial motor vehicles on provincial highways. The regulation provides the legal framework governing how such vehicles may be tested, who may operate them, and what responsibilities fall upon owners, drivers, and regulators during the life of the project. By defining the vehicles within the scope of the pilot, outlining approval processes, specifying insurance requirements, setting out driver and operator duties, and mandating reporting obligations, the regulation seeks to balance technological innovation with public safety and accountability.

The regulation defines automated commercial motor vehicles as certain large vehicles covered under Ontario’s vehicle weights and dimensions standards that incorporate an automated driving system meeting SAE J3016 levels 3, 4, or 5. These are vehicles capable of performing dynamic driving tasks ranging from steering and braking to lane changes and traffic responses, with higher levels requiring little or no human input. For legal clarity, even when an automated system is engaged, a person seated in the driver’s seat is considered the driver unless the vehicle is operating at the highest automation levels without a human present.

The pilot project applies broadly to such vehicles, regardless of whether the automated system is active, and ensures that the Highway Traffic Act continues to apply, with necessary modifications, to drivers and owners. Liability in the event of an accident remains consistent with Ontario’s fault-based system, ensuring that injured parties may still recover damages. However, additional protections are introduced to address the unique risks of automation. Owners must carry insurance with a minimum coverage of $10 million for bodily injury, death, or property damage, a figure far higher than ordinary automobile requirements, reflecting the scale of potential risks with heavy commercial vehicles.

The regulation strictly prohibits the use of automated commercial vehicles on highways unless the owner has obtained specific approval from the Registrar of Motor Vehicles. Applications must contain any documents and information the Registrar requires, and applicants may be asked to demonstrate compliance with commercial vehicle safety standards. Approval is discretionary, subject to conditions deemed necessary for public safety, and may be refused or revoked if an applicant provides false information, fails to comply with conditions, or conducts unsafe testing.

The regulation mandates technological safeguards within the vehicles. Each automated commercial vehicle must have mechanisms to engage or disengage the system, fail-safe alerts to warn drivers of malfunctions, and systems that either require drivers to resume control or automatically move the vehicle to a safe stop in case of failure. Drivers are required to remain in the driver’s seat, monitor the vehicle, carry a copy of the testing approval, and present it to police officers when requested. In case of an accident or traffic stop, they must inform authorities that the vehicle is part of the pilot project.

Ontario (161/2025) August 13, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.