Earlier quoted context omitted.
1) Car insurance can work exactly like it currently does. The car owner's insurance is liable by default, however if the car itself is in some way at fault (performing out-of-spec), then the insurance company goes after the car company. This can already happen if something like brakes fail or accelerator gets stuck. 2 & 3) Yes there are some edge cases that you can't train for, but same with humans. What do humans do…
Car insurance: I had made a simplified argument, but to itemize, auto insurance may work the same for auto-theft and some liability coverage. But, it definitely cannot work the same for anything remotely related to driver (or in this case self-driving system's) fault. Edge Cases: Humans use their brain and adapt. Self driving systems have no concept of adapting, hence the result is undefined. > over 1.25 million deat…
Self driving systems however do adapt. Most companies are using neural networks which can be retrained based on their mistakes. Unlike a human, they can also be trained on each and every crash for which sensor data is available.