Maybe they could have some kind of guided manual mode where you could fly it wherever you wanted but a set of safety and guidance systems kept it from crashing into objects or other cars
You're on the right track. This is the second or third time I've said this in the thread, and I've said it numerous times elsewhere, but it's worth emphasizing again.
Flying a car using AI to drive would be great, but how much more enjoyable would it to drive by yourself? A solution to the safety problem is to have a repelling motion inversely squared proportional (or cubed maybe?) to the distance between your car and another object (whether it be a building, or another flying car.), and also inversely squared proportional to the relative speed of the objects (so if you're going slow, you can be quite close to another flying car, and if you're going fast, then the repelling motion would be much greater, and if you're both going fast in the same direction, you can be quite close again, because the relative speed is almost zero).
This would allow for safe, and immensely fun, freestyle flying - we'd just need decent maneuverability from the flying car.
I followed some jerk whose brake lights didn't work last week.
You would become that jerk if your lights failed mid-way through a drive, or you didn't check them every single journey.
"Ninety percent of baseball is half mental." -- Yogi Berra