Scientists at computer chip giant Intel are developing a smart car fitted with aircraft-style black boxes that can record audio-visual information about driving behaviour during accidents.
The device will record information about the vehicle speed, steering and braking along with video footage from inside and outside the vehicle, researchers involved in the project said.
The information, they said, would be automatically sent to police and insurance companies in the event of an accident to make it easier to determine the cause of car crashes and identify the person responsible, the Telegraph reported.
Justin Ratner, the director of Intel Laboratories and chief technology officer, said: "We are looking at a whole range of enhancements that will improve the driving experience, safety and security of vehicles.
"The intelligent vehicle is what we are talking about here. Once a car is connected, more or less on a continuous basis, all sorts of interesting possibilities present themselves.
The technology, which was revealed at a research showcase by Intel in Santa Clara, California, last week, will transform cars into smart vehicles that are able to detect dangers on the road and even take over control from motorists.
The company has been in discussions with car manufacturers about putting the technology into new vehicles.
According to the researchers, they are also developing a camera system that can recognise street signs and then take over control of a car if the motorist tries to drive the wrong way up a one-way street.
On board sensors will also be able to detect pot holes in the road and report their location to road maintenance authorities as the car is moving.
The cars will also be able to track the location of surrounding vehicles and alert drivers if they get too close or try to change lanes when another vehicle is in their blind spot, the report said.