Alternatives to mandatory auto insurance

As has already been pointed out, there are grave public dangers involved in making automobile liability insurance universal by compulsion; and there are large numbers of eminently responsible automobile owners who plainly do not want to insure and upon whom an obligation to insure would be an imposition entirely useless for the purpose intended. Auto insurance comparison online is free.

Clearly such an imposition would be arbitrary, paternalistic and bureaucratic. All that a government based upon principles of liberty can rightly exact is that each owner shall put up security or a guaranty of responsibility in whichever best suits him of all practicable forms that will affect the purpose above specified.

Few of the measures now pending or proposed satisfy this condition. The majority of such measures prescribe that, as optional alternatives to insurance, the automobile owner must either (a) file a surety company bond, or (b) deposit cash or securities with a public official. But neither of these two promises to be a satisfactory alternative to insurance in many cases.

Corporate surety bonds without a deposit of cash or similar collateral are not available to a majority of automobile owners. And the expenses, difficulties and delays incident to the recovery of funds that once get into the hands of public officials will deter all but the most optimistic from having recourse to the other alternative. Consequently a law which would permit only these two alternatives to insurance, would practically be neither more nor less than compulsory insurance for the vast majority.



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