1) Liability is assessed exactly as it is now. We use the same system to determine which car was at fault. If it's your car, you are at fault. Someone will insure a self-driving car, especially once the safety record is established. Your current provider might not, but someone will. If you were using the self-driving system improperly (e.g. in weather it can't handle well in yet), you may also be subject to different rules or even criminal prosecution.
Vendors may also be willing to pay for that insurance as part of a monthly fee just to shut people up over this very easy-to-solve "concern."
If no one is willing to insure your self-driving car, I'll start that business. I could charge a premium for a service that costs me less to provide!
2) People seem to think self-driving cars should be perfect before they're introduced. They won't be. Neither are we. It just has to be better (under given weather/traffic conditions) than we are to save lives. We'll have steering wheels in the cars for a long time which you'll have to use when the car can't safely drive itself.
The Wired article is just clickbait using the fear angle. We face the same decisions every day, and "unavoidable" accidents will be even more rare than it is now as this technology evolves.