I think you're right about insurance companies playing a big role, we've already seen 20% discounts for having Adaptive Cruise Control in Europe. But I don't think this will be a quick change.
First, people take awhile to replace their cars. I don't know the stats for this, but 10-year old vehicles don't seem atypical. The good news is that gives a chance for reducing costs. It was back-of-the-envelope calculation based on parts only, but one article I read estimated 5-10k would be added to Cadillac's self driving car if they introduced it by 2015. [1]
Second, there are still some hard problems to solve. According to Thrun, they don't have a solution for snowy roads that block the car's vision of the lane markers, and Cadillac's vehicle has the same problem. That'll also be a problem in areas of construction where line markers aren't accurately marking the road.
There's also some major regional challenges. In Pittsburgh, per a convention known as the Pittsburgh Left, a driver stopped at a red light will pause after the light turns green to allow the “first driver in the oncoming traffic... to make a left turn.” Thrun's team is working on collecting massive amounts of data to overcome niche issues like that, but is that something every car manufacturer will have access to?
I think we can also expect some legal barriers to be a problem. I don't have the best grasp on this, but from a RAND report I read it sounds like state tort law, combined with the complete lack of state or federal laws concerning autonomous cars, could create liability issues for manufacturers. Maybe that would necessitate some lobbying and court battles before manufacturers risk masses of autonomous cars? It's hard for me to tell how important these issues are because the biggest player, Google, isn't focused on the market now.
Ultimately you're clearly right, autonomous cars are definitely the future, but I'm feeling more of a gradual shift as problems are ironed out and the prices of sensors are reduced.
[1]http://www.extremetech.com/extreme/126841-cadillac-promises-...