Why Is Car Insurance Mandatory?

By: August 4, 2013 Car Insurance

It’s Against the Law to Drive Without Insurance

Why, oh why, must we spend egregious sums of money every year to pay for car insurance? Who is responsible? Who in their wisdom or the lack thereof felt it necessary to impose this seemingly unnecessary burden upon on?

A Trip to the Past

Well, it all goes back to the early 20th century, when automobiles began appearing more frequently on the streets.

As can be expected, accidents began piling up, and nobody quite knew what to do. Just imagine getting into a crash and not having any legal recourse available to you. We imagine this caused quite a deal of fights and perhaps even deaths.

Around approximately 1925, Massachusetts and Connecticut set up the first-ever “financial responsibility and compulsory insurance laws.” It basically made it possible for the victim of a crash caused by somebody else to fight and prove in court that he was owned money.

As the number of drivers increased, so did the number of accidents. As you can imagine, this created a lot of allegations:

  • He did it?
  • She did it?
  • It’s his fault!
  • It’s her fault:

It helped that these accusations could be played out in court, but over time, legislators realized that this wasn’t enough. Consider for instance the risk of non-payment. What if the individual responsible didn’t have enough money or possessions to compensate for the damages?

Ultimately, legislators realized that the best way to mitigate all the risks involved simply requiring that drivers prove financial ability through an insurance system. Drivers basically had to ASSURE that they possessed the means to pay for damages they might cause during a crash.

This led to federally mandated laws requiring that drivers obtain formal insurance protection before being able to drive.

Consider The Benefits

Still not convinced by the lessons of history? We don’t blame you. Insurance is expensive and annoying. However, consider the additional benefits of mandatory car insurance that we have listed below:

Pay Some Now, Save A Whole Lot More Later

Millions of car accidents occur every single year in the United States. Everybody is involved in a car crash at least once in his or her left. It is inevitable. Mistakes and accidents happen. Imagine if for whatever reason you cause a car accident that leads to hospital bills and repair costs galore. Are you ready to pay out $70,000 or more on a moment’s notice?

A Helping Hand

Insurance also means help. Insurance companies are there to aid you through the crash process, i.e., collecting the proper information, finding the best repair shop and getting the money you are owned. It may seem like a very small benefit, but you’ll appreciate it in case you ever get into a crash.

Double Protection

Car insurance also serves an important role toward your protection. By ensuring that everybody who drives is insured, the federal government thereby makes certain that other drivers have the capability to pay you for any damages they do to your vehicle.

Added Protection

These days, car insurance extends past just beyond protection. You can obtain insurance to cover your car for theft, fire and more. These are expensive add-ons, mind you, but they add a level of protection that was completely unheard when cars first sprouted up across America.


Car insurance is expensive, but ultimately, it’s worth it. If it weren’t for car insurance, in fact, this world would be a very different place. Car insurance effectively reduces the complexities of what could be an endless procession of ‘he said,’ ‘she said’ claims into a simple, effective process — one used every single day by thousands of Americans.

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