Why do most states require all drivers by law to carry auto insurance, but not necessarily other kinds of insurance?
1. To cushion victims from financial burden
When a car has been involved in an accident, many potential losses can be suffered. These losses could be on the driver, passenger, or even third parties. Regardless of who has suffered a loss in a car accident, bodily injuries could be sustained or property damaged. These losses at times inflict substantial financial losses on a victim.
To ensure that the financial state of a victim is best protected in case of an accident, most states have laws demanding drivers to carry fundamental car insurance covers.
2. Enforce accountability
Road safety of road users does not just depend on how cautious they are at individual level. It is also correlated with how responsible other road users are. This implies some people end up being victims of car accidents not because of their mistakes. They often sustain injuries of property damages due to careless driving by other road users.
To hold irresponsible drivers into account for their accidents, states have laws demanding fundamental insurance for any roadworthy car. These laws are used to hold drivers who commit road range into account for losses caused to other people’s cars or bodily injuries.