Why do we have to pay car insurance for other people’s cars?

August 22, 2017 · Posted in FAQ 
car insurance
frozen555 asked:

As I understand it, the car insurance we pay is to fix other cars and their drivers in case we hit them. I don’t understand why the law requires that we must pay for others’ protection. Why shouldn’t everybody pay for his own protection? If car insurance is required for everyone, then it would make no difference anyway, and I think, it would make people more motivated to get insurance.

For example, if I pay $150/mo for car insurance, and if someone hits me who has no insurance and no money, then my car will look terribly even though I kept the law. This doesn’t sound fair to me. If someone hits me, then their insurance should cover their damages and my insurance should pay for my damages. Why should I suffer a loss because they didn’t keep the law?

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4 Responses to “Why do we have to pay car insurance for other people’s cars?”

  1. Sydney on October 22nd, 2009 1:04 am

    You aren’t paying car insurance for other people’s cars.

    If you are involved in a 2(or more) car collission and the accident is YOUR FAULT, then your insurance pays for YOUR MISTAKE by paying for damage to the other person’s car. If your insurance did not willingly pay for the claim, the other person could sue you for damages anyway.

    If you are involved in an accident that is YOUR FAULT, but say, you hit a curb or something other than another car, your insurance will pay for damages to your car.

    Car insurance also pays for bodily harm care, for both you and another injured party.

    You should read your car insurance contract/statement carefully and call your agent if you are seriously confused about what it covers.

  2. james k on October 23rd, 2009 5:38 pm

    yes sir, it’s called comprehensive insurance. i think you are looking at this from the legal minimum limits mandated by law which is liability insurance. liability just guarantees you can pay for someone elses needs, if it is your fault. NOW if someone is driving without insurance and hits you, that is a criminal offense and that is supposed to be the incentive to have insurance.

    most folks with nice cars, or with a note have full coverage. in fact a lender will demand comprehensive as part of the note. comprehensive covers everything. the same things liability does, and damage to your vehicle if the other guy doesnt have insurance and even if it was your fault.

    usually behind the scenes the insurance companies of the parties involved will assess an amout of blame for accidents to each party and settle up amongst themselves.

    jeeez, now im confused too. hope THAT helps.

  3. scooter on October 25th, 2009 3:03 am

    GEt real .
    Homeonwers as an example.
    My house was hit by ligtenting lots of damage.
    They paid for he repairs.
    Same with you car.
    get srious today

  4. HANAN. on October 27th, 2009 1:57 am

    What you are asking for is called “no fault insurance”. Many state legislators have considered it. 12 states + Puerto Rico have this kind of insurance. “No fault insurance” can reduce premiums since lawyers need not get involved if the damage is only to the cars. See :(http://www.iii.org/media/hottopics/insurance/nofault/)

    Read Pros and Cons at :

    The main reason that “no fault” does not have wider adoption, is that lawyers like the income. Those are the political games between lawyers, legislators and insurance companies.

    Also note that there are the issues of liability when there is injury, death or car vs. pedestrian. Unless you go for “no fault” on everything “no fault” on the cars only is murky in the political world, and you can not for example go “no fault” on car/pedestrian accidents.

    Note also that the extra premium you pay in car insurance for “the right to sue the other driver” is dwarfed by the extra premium you pay in medical insurance for “the right to sue your doctor”.

    We do not really know what the “right to sue” is worth in those cases, but we sure pay a hell of a lot for it.

    Keep Smilin’

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