Auto insurance in the United States is a public policy designed to cover the risk one takes of getting in an accident when they drive an automobile. When someone buys or rents a car, they are required to purchase auto insurance with that automobile. However, the amount of insurance that is required varies by state, which is the weakness in this policy. Some states require almost no insurance, while others require full coverage for anything that might happen to the automobile. I believe that all states should require full coverage so that there are greater incentives to drive carefully.
I believe that the amount of auto insurance required should be the same in all states because there is a negative externality associated with a lack of insurance. Automobile accidents happen quite often and can sometimes be attributed to outside factors like weather or road conditions. If people are uninsured, they may not be able to pay for an accident caused by these outside conditions. Additionally, some people will inevitably not be able to afford the cost of an accident that they do actually cause. This puts the economic burden on someone else, which is a negative financial externality for the overall society. I believe auto insurance should be regulated throughout the United States and require people to have full coverage in order to avoid problems such as the ones mentioned above.
- David Berk
I believe that the amount of auto insurance required should be the same in all states because there is a negative externality associated with a lack of insurance. Automobile accidents happen quite often and can sometimes be attributed to outside factors like weather or road conditions. If people are uninsured, they may not be able to pay for an accident caused by these outside conditions. Additionally, some people will inevitably not be able to afford the cost of an accident that they do actually cause. This puts the economic burden on someone else, which is a negative financial externality for the overall society. I believe auto insurance should be regulated throughout the United States and require people to have full coverage in order to avoid problems such as the ones mentioned above.
- David Berk
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