Proper understanding of automation limitations is vital in order for drivers to deal with unexpected critical situations. The present study focuses on explanation-based knowledge of the limitations given to novice drivers who have no knowledge and experience of using driving automation systems. The knowledge is discussed considering (1) the possibility of the automation failing to issue an alert when the driving automation cannot handle the situation and (2) the manner of describing the limitations from either a functional or scenic point of view. An experiment conducted under 2 × 2 conditions of explanation-based knowledge (n = 24 participants per condition, average age of the participant = 55.9 ± 16.2 years) is implemented in a driving simulator. Data on transition time from automated control to manual control are collected. The results reveal that drivers could intervene more safely if the knowledge is described from a scenic point of view (average ratio of safe intervention = 95%, average reaction time = 2.0 s), as compared to a functional description (88%, 2.3 s). Explicit/scenic knowledge was found to be more beneficial in responding to alerts in such situations involving system limitations as well as in dealing with critical system failures. Further investigation of glance behavior and interviews revealed that novice drivers with explicit/functional knowledge are prone to be over-reliant on the automation’s capability. Therefore, the present study clarified that providing a driver with knowledge about system limitations/failures explicitly while giving is instructive for perceiving and responding to system limitations as well as unexpected hazards due to system failures.