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If Ford was fully liable for any accident in which a driver of a Ford vehicle was found at fault, but this did not apply to any other vehicles, how much more do you think Ford vehicles would cost than all those other vehicles to cover that liability? I expect it would be at least an order of magnitude; being involved in an accident with a Ford vehicle would be a potential lottery-winner (regardless of who was at fault, and that's often muddy). And I think that's true even if from some nonexistent objective observer's POV, the Ford driver was never actually at fault.
The part you're forgetting is that if Ford has to insure against all those accidents then the driver doesn't. The up front cost to the consumer may be more, but it's effectively prepaying an insurance policy that lasts the life of the vehicle. Whether or not you're actually coming out ahead depends on specific numbers, but as long as they're somewhere in the ballpark of what you'd spend on insurance then it's a question of how much you value self-driving capability, which is already enough of an advantage that people would be willing to pay a steep premium.
Yes, but I claim the per-accident cost for Ford will be more because liability is not limited to policy limits + net worth of driver, and because plaintiff's attorneys and juries will know this. (Not to mention adverse selection of bad drivers into Fords, but that doesn't apply to the self-driving case)
I just spent all day defending large companies in products liability actions, and I'll do the same thing tomorrow, etc. I don't have the time or the inclination right now to give a crash course on how personal injury litigation actually works, but suffice it to say that the jury is irrelevant. We often bring it up but it's more of a theoretical construct than a real thing, because there's no way in hell a case actually goes to trial unless things go significantly off the rails. Damages in a case aren't related in any way to coverage limits or how deep the defendant's pockets are. The damages usually aren't even alleged and when we're evaluating cases are projected awards are just estimates. But no one wants to go to trial; these things settle. Plaintiffs' lawyers, as I said earlier, have to work for free until the case is resolved. The plaintiffs themselves don't want to wait, either, and their engagement agreements require them to accept any reasonable offer. Most of the work involved in a case is less legal razzle-dazzle and more going through the evidence systematically to determine an appropriate amount for settlement negotiations. The idea of a rainmaker gunning for a huge verdict is something more out of a John Grisham novel than the reality of day to day lawyering. There are some Plaintiffs' attorneys who are like that, but they tend to get shitty cases that it quickly becomes apparent aren't even worth trying for a big score; they usually end up just taking whatever we offer them. Some are more aggressive than others, but they're all pragmatic. They have businesses to operate, and they can't afford to throw 200 grand into a holein the hope that it turns into a big score. Any Plaintiff's lawyer working on contingency needs a war chest, and it's much easier and better for their clients to make sure they get a fair settlement then to burn through all their operating capital in search of a huge payday. There's also the added wrinkle that most jurisdictions now have mandatory settlement conferences with the judge; judges in general aren't necessarily averse to trials, but they don't like it when the parties can't settle straightforward cases with no major issues. If one party is intransigent, they aren't getting any help there. As for the insurance companies, they're durable. They survived asbestos, where they're still paying millions of dollars a year on decades-old general liability policies that had low premiums to begin with. They survived countless natural disasters where everyone in a large metro suddenly needs a new car or house at once. They'll survive self-driving cars just fine.
One caveat I'd add is that this is, of course, dependent on self0driving cars being as good as if not better than human drivers are overall. If they're not that good then they'll never be able to market them in such a way that will absolve the driver from any responsibility. Despite recent gains, I'm skeptical that they'll ever get that good in our lifetimes, in which case this exchange is pure navel gazing. But if they do, I don't think liability is going to be a huge issue.
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