Why Is Car Insurance Mandatory

So when times get tough it s often one of the first expenses you start to eyeball and wonder if you really need it.

Why is car insurance mandatory. Advantages of buying car insurance. The reason why state imposed mandates to purchase automotive insurance are legally permitted but the federally imposed mandate to purchase health insurance was legally infirm flows almost entirely from the difference in the united states between. Let s take a closer look at why car insurance is mandatory why you need it and what would happen if you drove an uninsured car. Why auto insurance is mandatory.

By ellen roseman contributing columnist. Collision insurance protects the car from fire theft vandals etc and is not mandatory if when the car is paid off. Car insurance is mandatory to help the family of the deceased who might lose their life in a car accident. Under chapter 11 section 145 to 164 of the motor vehicles act 1988 it is compulsory to buy at least a third party car insurance policy in india.

Car insurance laws are set and enforced at the state level and 49 of the 50 states in america require all drivers to carry an active car insurance policy. Car insurance is sometimes expensive often confusing and almost always mandatory in the us. The purchase of automobile insurance is mandatory in canada. Posted september 20th 2010 filed under knowledge center.

Like it or not car insurance is a necessary cost. Depending on your level of cover it can help with claims for damages to other people their property you and your car. The motor vehicles act 1988 mandates this due to the following reasons. Car insurance can be of two types third party liability insurance or comprehensive insurance.

It reduces your liability it could pay for hospitalisation it helps you stay stress free. Sun july 1 2007 timer 3 min. Car insurance isn t the kind of expense you simply shrug off especially if you pay it annually or every two years. And without wading too far into the political waters it is important to first differentiate between collision and liability insurance.

Why is auto insurance mandatory. It has often been wondered why america mandates car insurance but not health insurance. The compensation under the motor tribunals act was introduced to ease the burden on the families. While buying a car it is necessary that you buy car insurance as well.