that needs to change because the "driver" cannot be held responsible.
Your use of quotes there is interesting and important. The people inside a fully autonomous cars are passengers, not drivers. If someone is driving a car, it's not autonomous. Essentially, the manufacturer *is* the driver. Their programming, sensors, algorithms, and maps are what is used to control the vehicle, the passenger isn't involved. If I'm not in control of a vehicle, I have no intention of being liable for its actions.
if the owner modifies the car or fails to perform maintenance, and that causes the AI to malfunction, the owner should probably still be held responsible.
Another interesting choice of wording. I don't think manufacturers will sell fully autonomous cars. They will lease them, they will license them for use, or something similar will happen. If the manufacturer is going to accept increased liability for accidents, they are going to want increased maintenance levels and less modifications. To get that level of control of the car, they won't sell them, they will be rented in some way. I could even see where they don't lease or rent an actual car. Instead, you would subscribe to a service. The car manufacturer then has fleets of different types of autonomous vehicles waiting to be told where/when to pick you up. You need a truck to haul lumber and building supplies, select that type in the app. You need an SUV or other vehicle that can carry 5+ people, same deal.
This isn't all going to happen at once, as human driven cars will be phased out over time, but eventually, there won't be any humans legally driving cars (at least in anything resembling an urban area, the pace and method of change in rural areas will be different), and they won't own the ones they are riding in.
I'll go crank up Red Barchetta by Rush now.