>I have yet to hear an insurance company step up and state how they are going to handle these issues.
Well, if a company puts out a decent self-driving car will great commercial opportunities, any smart insurance company will want to get a hand at that pie (insuring its drivers).
From then, it's up to how good the car company can convince the insurance company that their car will have an equal or less accident rate than a regular car.
If the car company can show them that it has an equal accident rate, an insurance company would be stupid not to insure it. And doubly stupid if the car company could show the cars having a smaller accident rate.
So shouldn't be that difficult -- and far easier than also having to convince the buying public.