Eventually it might, but that assumes that all cars will be driverless. Even if driverless cars have a 0 error rate, human driven cars will run into them at at

Eventually it might, but that assumes that all cars will be driverless. Even if driverless cars have a 0 error rate, human driven cars will run into them at at least the same rate as they run into static objects. At any rate, this eventual reduction in insurance is why I started by saying "Initially at least". With time, the cost of manufacturing self driving cars will also go down.