In the medium term, we won’t have auto-driving cars; we’ll have cars with “autopilot”. The distinction is that you will still have a “pilot in command” that can override any automatic decision. Of course, there will still be lawsuits, but most of them will go the way of “We never guaranteed that the autopilot works in every situation. The driver is still ultimately responsible.” Just as now, where auto manufacturers don’t get sued because someone used cruise control to rear-end someone.
Maybe after another 20 years of mostly-automated cars on the road, the bugs will be worked out and manufacturers will be willing to flip the switch. It’ll take that long for the legislation to catch up, anyway.