> If they're not willing to [...] buy enough insurance to
> pay out the claims [...] they [...] shouldn't be selling
> [these] self-driving cars, period.
The problem with this view is that you're assuming that the current risk created by drivers that society would benefit from moving to self-driving systems is priced into their current driving, or into their insurance.
Western countries have mostly decided that society should simply eat that cost.
If a child gets killed by a negligent driver the driver or their insurance is almost certainly not going to be "fairly" compensating anyone, to the extent that such a thing is even possible when it comes to losing a human life.
There was a case in The Netherlands[1] where a grossly negligent driver killed 2 year old and her grandparents by rolling their car over them in a turn they were speeding through. The driver got probation, and a bit of community service.
On reflection I don't even think that's a bad outcome per-se. Very few people could truthfully report that they've never broken the traffic law in a similar manner even once.
It's mostly just moral luck that decides the difference between that being something stupid you did in your 20s with no repercussions, and another equally irresponsible person being unlucky enough to kill a child.
So should that person spend 20 years in prison and be subject to wage slavery for the rest of their life as a result? Probably not.
Now, imagine the same outcome, except this time the CEO of Tesla or Mercedes is going to have to answer in court for it. "Mr. Musk, why isn't your company paying out these parents fairly?". Of course a self-driving car is unlikely to accidentally make that specific mistake, but statistically the outcomes might be comparable.
My point upthread is that we're almost certain to end up over-pricing the risk caused by self-driving vehicles, while directly and indirectly subsidizing the continued operation of motor vehicles by even more flawed human beings.
People are simply bad at reacting to diffuse v.s. concentrated risk, and are inherently conservative when it comes to evaluating the risk of something new, v.s. an even riskier activity they've gotten used to.
1. https://www.mirror.co.uk/news/world-news/watch-father-throw-...