Re: Obviously the solution is....
"The insurance industry will eventually make premiums for manual cars prohibitively expensive"
Why?
The cost of insurance is meant to cover the cost of covering the risks involved, plus overheads, plus some sort of profit margin. None of these costs suddenly becomes higher due to the introduction of self-driving cars. In fact, if self driving cars really did turn out to be safer than human driven vehicles it would lead to the roads becoming a lower risk environment - average insurance costs for human driven vehicles might even be expected to fall.