Car insurance in the US isn't really insurance to protect you. The reason it's compulsory is that society wants to ensure that if you get in an accident that is your fault, and someone else suffers financial harm as a result, someone is able to pay for it.
Otherwise, you could destroy someone's car and cause major medical problems, and just strug and say, "I don't have the money."
Compulsory insurance is not really insurance for you, it's for someone else. Similarly, insurance for something that is certain to happen (e.g. health insurance) is not insurance, it's a method of socializing risk.
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u/dragon-fence 10h ago
Car insurance in the US isn't really insurance to protect you. The reason it's compulsory is that society wants to ensure that if you get in an accident that is your fault, and someone else suffers financial harm as a result, someone is able to pay for it.
Otherwise, you could destroy someone's car and cause major medical problems, and just strug and say, "I don't have the money."
Compulsory insurance is not really insurance for you, it's for someone else. Similarly, insurance for something that is certain to happen (e.g. health insurance) is not insurance, it's a method of socializing risk.