Friday, September 09, 2005

What's compulsory car insurance all about?

Why do states mandate car insurance for everyone? People who have assets would naturally need car insurance to protect those assets. But people who have nothing-- Why take from them the little they have, and make them give it to an insurance company? Who benefits? Lawyers call people like that judgment proof, meaning you can't get blood from a stone.

The trial lawyers love it auto insurance, because insurance companies have deep pockets, which they are encouraged to ransack. The insurance companies don't defend their insured; they settle because it's cheaper and takes less time. It's a game that's profitable for the insurance companies and the lawyers, but if you look at it dispassionately it is an extortion racket. It's particularly hard on low income people.

If any accident takes place that costs less than $1,000, you would be well advised to shell out the dough yourself. Who told me that? The representative of my insurance company, that's who, when I suffered a small fender bender that cost $800 to fix. My cousin, the lawyer, told me the same thing.

Don't get me started on malpractice insurance.

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