This report is intended as a guide for state and federal policymakers on the many issues that this technology raises. After surveying the advantages and disadvantages of the technology, RAND researchers determined that the benefits of the technology likely outweigh the disadvantages. The industry now appears close to substantial change, engendered by autonomous, or "self-driving," vehicle technologies. For the past hundred years, innovation within the automotive sector has created safer, cleaner, and more affordable vehicles, but progress has been incremental. The report also explores policy issues, communications, regulation and standards, and liability issues raised by the technology; and concludes with some tentative guidance for policymakers, guided largely by the principle that the technology should be allowed and perhaps encouraged when it is superior to an average human driver.