I mean, sure, you can come up with some scenario where the liability exceeded the insurance coverage, but I haven't heard of many of those. Anyway, it comes from somewhere. If bankruptcy protects drivers, it also exposes them to the risk that they will suffer damage that isn't compensated.
Regardless, expecting a legal loophole to preserve the status quo indefinitely seems quite unrealistic and inherently unstable. If that actually holds up something that could massively benefit society (both economically and in saving lives), we simply legislate liability limits.
Liability you can incur while driving is almost arbitrarily high. Individual drivers rely on the existence of bankruptcy protection to cover these rare scenarios, or simply don't think about or plan for this at all.
> but I haven't heard of many of those.
How many do you think it takes to put a self driving car manufacturer out of business?
I'm not saying the status quo is a great situation, or that this is a good or bad argument for or against self driving cars. Only that it's a description of the current situation, and why legal issues might be a much bigger problem for self driving car manufacturers than individual drivers.
It's a different type of potential error and a much more scary one. I can mitigate human drivers as a pedestrian by taking care walking, but I cannot mitigate an AI that thinks my shirt makes me look invisible due to its learning being deceived by a pattern.
I'm not sure why people even embrace self-driving cars. By now we know that centralization, lack of maintenance, and fragmentation in software are serious risks, as well as how software can increase the attack vector on people as well as provide benefit. I'm not sure if the risks are worth the modest efficiency increase, and this isn't even getting into existential risks like external parties being able to control when you drive, or attacks on the networks or technology.