If the AI is as good or better than a human driver your first point wont matter.
You can't avoid accidents anyone who is driving a car on a daily basis will be involved in an accident involving another human being in one point or another (and I don't even count rush hour fender benders) that's just statistics.
If driverless cars can improve those statistics they'll be used if only than to get lower insurance premiums in the end a company that can reduce the chance of you getting into an accident by even 10% would have every insurance company in the world behind them.
I for one do not see a major legal battle or precedents especially not from places like China, smart cruise control and various other drive assist technologies (lane keeping, auto park etc.) have been around for about a decade and we still haven't had major cases around them and there is no way that say Toyota's auto park feature did not cause some accidents.
Driverless or not as long as there is a driver in the car they are responsible for any liabilities as they have full control over the car even in drive assist mode (steering and breaking is always accessible to the driver) so unless there will be some major issue and that issue has to be that the AI actually prevented the driver from using the car controls I don't see any major legal issues arising.
And by the time driverless cars become truly driverless as in Total Recall (the Schwarzenegger one) driveless insurance companies would find a solution for that just like they found a solution for human drivers.
As long as it's an accident and the AI and all car systems were in working order the insurance will cover it if the car was not maintained properly then the owner of the service will be liable. This is pretty much how human driver coverage works, if you did nothing wrong, the car was maintained, and you weren't negligible (e.g. drunk driving, speeding, etc.) you are covered by your insurance in any other case you are on your own.