How auto insurance protects us

Under present insurance policy forms, certain obligations are imposed upon the policyholders, certain conditions are attached to the policy and the coverage itself is limited by certain exceptions. Thereby the insurers retain a large measure of control over the assured, sanctioned by the fact that if the assured’s obligations are not complied with or if the conditions or exceptions be violated, the assured will not be protected. Compare auto insurance quotes now!

These provisions are permissible because under present conditions the policy is a contract between only the insurer and the insured. But the purpose of compulsory security is that the insurance policy, for the protection of the assured motorist, shall protect also the injured member of the public; and the provisions referred to, being inconsistent with the latter purpose, would have to be prohibited. Their absence would not only tend to increase the actual number of accidents but would also and most certainly increase the number to be paid for by the insurers, and would thus inevitably increase the cost of the insurance.

In this connection it should be realized that compulsory insurance involves an inversion of the natural intent and purpose of automobile liability insurance. When the owner of an automobile voluntarily buys insurance he does so to protect himself, and the policy is framed to suit his interests. But when, under a compulsory law, he puts up insurance as security for the public, the purpose and intent of the contract are reversed, the interests of the purchase become secondary and the policy must be drawn primarily to protect the public against him. Such change of purpose necessitates the elimination of certain features of the existing form of policy which, for reasons above indicated, tend to accident prevention and the reduction of the insurance cost.