Question

I think that auto insurance is a deterrent for most people to get into accidents. If an individual gets into an accident that is his or her fault then the insurance premiums will go up in the future. As most people want to try and keep their rates low, they will drive safer and try to avoid accidents. If states did not require drivers to carry insurance then people would have to pay for all damage out of pocket. Auto repairs and lawsuits for injuries can get very expensive. People would probably drive safer to avoid these unnecessary expenses as many people cannot afford to have to pay for these types of large expenses out of pocket. At the same time, auto insurance doesn’t prevent accidents for all people. Higher income people may not care if their premiums go up and would still drive how they want or others may see the insurance policy as a method to cover them in the event of a lawsuit. Many accidents are unavoidable whether there is insurance or not. Insurance can help to alleviate some of the costs but it cannot completely eliminate accidents. It all depends on the individual and how that person chooses to drive.

Please respond in 100-150 words

Answer 1

Auto insurance is a basic necessity for people to drive. If a person is driving without auto insurance and they get pulled over, their license would be suspended and they have a pay a hefty fine.

It is very true that auto insurance provides financial claims against damages done in the event of an accident. Firstly there are a wide variety of insurance types. It's true that the main motive for insurance is the rescue from the huge financial bills in the event of an accident and that the rich might not be motivated enough from a financial perspective. But a major chunk of the population comes under the middle-class umbrella who need such insurances and hence it is quite very helpful for them.

If the driver is found guilty they might have to pay up more premiums in future which would caution their driving. Since more drivers out there in the streets belong to the middle and lower middle class than the upper ones, hence a vast chunk of the population would be driving their cars quite safely.

Regarding the upper class, some insurances also cover damages in the event of a stolen car, which might be important for them.