The Noriko Uno case is the first so-called bellwether case in state courts, which is chosen by a judge to help predict the potential outcome of other lawsuits making similar claims.
Jurors deliberated for about five days before concluding the 2006 Camry's design did not contribute to the death of Ms Uno, who died in August 2009 when she was struck by another motorist, sending her vehicle into a telephone pole and tree.
Ms Uno's family was seeking £12 million in damages, claiming the crash could have been avoided if Toyota had installed a brake-override system.
The jury found the 86-year-old motorist who drove past a stop sign and hit Ms Uno should pay the family £6m.
Toyota had blamed driver error for the crash.