Why do we need auto insurance to drive? In many Asian countries its not legally required?

Why do we need auto insurance to drive? In many Asian countries its not legally required?

Why is it a law here in North America to drive with insurance. The federal and provincial Insurance Bureaus regulate these policies and rates and rip people off. Sometimes I think insurance is another form of tax.You can always take someone to the court to claim damages. Why is it that auto insurance is MANDATORY, it should be optional.Here in Toronto, its so expensive.

Mr

Auto insurance is rather controversial. Some states will fine, take licenses and plates and even seize cars if you do not have it. As you say, in many asian countries (and even New Hampshire) it is not required. Several religions ban the purchase of insurance (Mennonites and Muslims ban the purchase of insurance). Even big parts of the insurance industry oppose this law (State Farm, for example).Insurance companies want to insure the safe drive but not the high risk. Several studies show an increase in welfare nrs due to mandatory auto insurance and poor people not being able to pay their rent (I assume the landlords are hurting financially also due to mandatory auto insurance laws.). I drive a 2,000$ vehicle so I am not going to be out 20,000$ if someone wrecks my pickup. I am a veteran so I will have my injuries taken care of. I think if someone drives a 20,000$ vehicle which they do not need and have no right to drive, they should protect it themselves. There are 30% driving without insurance in some areas and the law simply does not work. I don't mind it if a poor person who is a safe driver drives without insurance. I am more worried about the high risk driver who has insurance than those driving without insurance who are good drivers.

Pancakes

Although insurance is the second oldest profession, it was made mandatory simply because politicians got to pocket large sums of money to pass these laws. As usual, it was passed to 'protect the people' so nobody would complain much like healthcare laws, environment laws, and food safety laws.

Nickaroni

If you hit someone and they get seriously injured and their car gets damaged or destroyed, do YOU want to be stuck paying the full bill for their recovery and a new car?Probably not...This is why we have insurance.

Ben

Say you went out today, ran someone down, whats the most you would be able to give them in damages with out selling all your stuff? Exactly, there is your answer.

Scott

Canada isn't Asia.

Ask

insurance

Popular Q&A

What type of insurance do I need to run a cleaning business in Michigan?
The basic business insurance normally includes general liability insurance, commercial auto coverage, workers' compensation and equipment breakdown. These may be all combined into a package policy, but you need to check with your agent to make sure you have coverage in these four areas. Besides...

How can we make LeBron pay?
Beat the Heat and he'll wish he stayed in Cleveland. And avoid those things anyway- they're bad for your health. As for Sate Farm, I prefer Geico.

What do I have to report to insurance agencies?
You can tell the insurance company whatever you want, ie: that I drive with hamsters in my pants or I love my beer, except when it spills on the console, etc. What will happen thankfully is that the insurance company will perform a background check on you and your driving record. To answer...

How long does it take to get an insurance refund check from Allstate involving car theft?
Was your car STOLEN, or broken into? Those are two completely different auto claims. In either case, nothing will happen until the police report is received, which usually takes at least three weeks. Plan on four weeks, unless this is just a glass claim, in which case it should be three...

We are buying a home n los angeles. Aside from mortgage payment how much do we pay for insurance and taxes?
It depends on where you live in LA, home insurance can vary greatly depending on location (fire / flood hazard areas, etc), the age of the home, what the home is built of, the type of roofing, the amount and type of coverage you buy, if you buy coverage for art, jewelery, do you have a pool...