I don't see why insurance would go up for people driven cars as self driven cars are introduced, the benefit of reduced accidents would be shared by all drivers, not just self driven cars. The danger in allowing some people to retain the ability to drive their own cars is the free rider problem, where people drivers share in the benefits but contribute nothing. Some posters in this thread have even declared that if a majority of cars were self-driven they would deliberately drive recklessly, ruining the gains made by self driven cars and discouraging some people from switching to them.
The self driven cars will be maximally beneficial when everyone gets on board, I have trouble seeing governments not doing anything about drivers who hold out and attempt to sabotage the group benefit.
If all cars were self-driven and, as a poster above pointed out, connected I imagine stop signs and lights and highway policemen would become mostly unnecessary.
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