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Autopilot worked for me today and saved an accident

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It isn't really about car lengths. It is about the length of time between when the car in front of you passes a given point and when your car passes that point. The general rule is 2-3 seconds, so if you are going slow the distance is shorter but grows as you go faster. That is how Tesla's follow distance for TACC works as well. The setting you pick (1 - 7) is a time measurement, not a distance measurement. The manual doesn't say how each setting correlates to time (i.e. whether each increment is 1 second or 1/2 second, etc.), just that it is a time-based measurement. I would think when using TACC you would want to build in an extra second or two so you have time to react if TACC fails.
 
if you keep it on anything less than one on NYC streets (and highways) you will get constantly cut off. just one reason to leave it at 1, -- even 2 can get you into trouble.

I definitely know what you mean. Even in somewhat more spacious north Texas I find that the average pinhead motorists on the road see the large space in front of me and immediately think it means that I'm driving slowly. Their typical response is to zoom around while giving me a dirty look and cut in front of me, only to find that the car now in front of them is going the exact same speed that I am. There are times I actually enjoy watching them make idiots of themselves.
 
I definitely know what you mean. Even in somewhat more spacious north Texas I find that the average pinhead motorists on the road see the large space in front of me and immediately think it means that I'm driving slowly. Their typical response is to zoom around while giving me a dirty look and cut in front of me, only to find that the car now in front of them is going the exact same speed that I am. There are times I actually enjoy watching them make idiots of themselves.

Same in the Bay Area. I usually run 2, sometimes 3 and I still get people at least looking to dive into the space in front of me. I've heard people on here talk about running it all the way to the highest (longest gap) setting and I couldn't imagine that.

I ran it at 4 today on a lark to test on 101 south during morning rush hour through the peninsula and people were _constantly_ cutting in front of me, which makes my car suddenly jerk back when the space is invaded and the cars behind me to slam on their brakes, then swing around to pass (and cut in front of me) first opportunity.
 
Manual drivers clearly don't follow the 2 second spacing rule and end up being too close to the cars in front. I know that I have been guilty of that in the past. The change in speed of the car in front is hard to perceive manually. Often I am surprised when my TACC adjusts speed because of the car in front. I barely notice it at 2 seconds away but sure enough if I look closely, the car in front did change its speed.
 
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Thanks for sharing your account of the event. More importantly, glad the accident was avoided.

I manage the setting for TACC following distance real-time based on changing traffic and weather conditions while using AP. For example, if running at 3 on a highway in light traffic and I see significant build up ahead then I pre-emptively dial back to 7 and reassess. I react similarly in adverse weather or upon realizing the driver in front of me is a hard-braker or shows a consistently delayed response to the driver ahead.
 
Great to see TACC/AP working well. It will be interesting though when there is a situation which AP has unintended consequences in similar situations. For example, in your case here, the AP abruptly applied the breaks because the lead car abruptly stopped. You couldn't tell because of the truck blocking your view yet the AP saved you. But given you had no forewarning, it would imply the car behind you would have no forewarning of your abrupt stopping so they could potentially rear-end you? I wonder how insurance works in those situations?
 
But given you had no forewarning, it would imply the car behind you would have no forewarning of your abrupt stopping so they could potentially rear-end you? I wonder how insurance works in those situations?

The standard is that if you rear-end someone it is your fault, end of story. It means that you were following too close for how fast you were travelling and the braking ability of your car. (Or you weren't paying attention in combination with the other factors.)