If it’s a feature of a car when you bought it and the insurance company insured the car then anything the car does by design must be covered. The only way an insurance company will get out of this is by making the insured sign a statement that if they use the feature it makes their policy void, the same way they can with rideshare apps if you don’t disclose that you are driving for a rideshare. They also can refuse to insure unless the feature is disabled. I can see in the future insurance companies demanding features be disabled before insuring them. They could say that the giant screens blank or the displayed content be simplified while in motion too.

What is far more likely is that policies simply wont cover accidents due to autonomous systems.

If the risk is that insurance companies won’t pay for accidents and put people on the hook for hundreds of thousands of dollars in medical bills, then people won’t use autonomous systems.

This cannot go both ways. Either car makers are legally responsible for their AI systems, or insurance companies are legally responsible to pay for those damages. Somebody has to foot the bill, and if it’s the general public, they will avoid the risk.

Not sure how it plays for Tesla, but for Waymo, their accidents per mile driven are WAY below non-automation. Insurance companies would LOVE to charge a surplus for automated driving insurance while paying out less incidents.