> Auto insurers don't face a "catastrophic liability" bankrupting scenario like home insurers might in the case of a natural disaster or fire.

This changes with self-driving. Push a buggy update and potentially all the same model cars could crash on the same day.

This is not a threat model regular car insurers need to deal with since it'll never happen that all of their customers decide to drive drunk the same day, but that's effectively what a buggy software update would be like.

I think you’re right, but this thread did bring to mind the LA Northridge quake (1994):

https://scpr.brightspotcdn.com/dims4/default/a553905/2147483...

I can easily imagine auto insurers facing exactly that kind of liability if a self-driving car release is bad enough.

A bad hail storm comes close. Hail damage can total a car.