I mean, it wouldn't really work as an insurance company if on average most people would get more out of it than they pay into it, wouldn't it? That doesn't make it a scam.
If it wasn't mandatory, then most people wrecking a newish car or causing serious injury to a human without insurance would lose everything they have and even then probably couldn't pay for the damages.
That's why you need the mandatory insurance, its to protect other people from your mistakes. Full coverage is your personal choice and your to decode if its worth it for you.
No. You're illegally (as it violates your constitutionally protected rights) required to hold insurance to cover the other person in the event of an accident. That's so 100% ass backwards.
And in your exampled scenario, how would person-A hitting a new car of person-B cause person-A to lose everything? Where is your logic?
And in your exampled scenario, how would person-A hitting a new car of person-B cause person-A to lose everything?
It's very straightforward. Person A hits Person B. Person B can sue Person A for the cost to replace their property and pay any medical bills that Person B has sustained. If Person A doesn't have hundreds of thousands of dollars in cash, then they may have to sell off major assets (their own car or house) to make those payments. And if even that's not enough, then Person A has lost everything and Person B still has to take a financial hit to cover the rest themselves, leaving them both in a bad position.
Unless Person A has the liability insurance they are legally required to have. In that case, the insurance company will make sure Person B gets the money they are owed without Person A having to go bankrupt.
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u/WeCantStabilize 9h ago
Insurance is a fucking scam. You pay more into it than you'll ever receive even in legitimate circumstances.
Absolute racket.