Owning a car is a dream for most of us, right? Sad but true- owning a car is not all cakes and brownies. It has its own baggage. Car insurance being the topmost of this baggage. But, we cannot deny the importance of car insurance. As much as we hate car insurance, we cannot get rid of it. But, what exactly are the things which make everyone hate car insurance? Let’s take a look:

1. Government Mandated

Compulsion and obligation can make even good things look ugly. That’s true. Weighing the benefits of car insurance against its losses reveal that getting an excellent coverage policy for vehicles is inevitable. However, when this demand comes from the government that feels like coercion. And there goes your motivation to purchase something good. And the government has got its right to make insurance a mandatory matter.

That being said, the government has its valid reasons for ‘imposing’ this car insurance requirement on all. The fact that the roads are public property and their responsibility lies with the government make the government responsible for imposing this on all of you. It is the government which has to take care and maintain roads. This gives the government the authority to regulate the terms by which the roads are accessed. Considering this, governments across the country have made it mandatory to require insurance for all vehicles using public roads.

Moreover, cars are dangerous. This means that there is a need of coverage for any liabilities which arise from using them – be those through commission or omission. So, that gives the government an authority to dictate its terms. It is for the safety and security purpose.

Yet another reason for the government to impose this requirement is that most of us use bank loans to buy cars. That speaks about the pressure which the banks give to the government to make sure they require insurance as a way to help protect their investments. Yes, you could get a car with cash or credit cards. But these are costly and time-consuming options. Therefore, most people prefer to get a loan.

2. No-fault policy

Under the no-fault policy, in certain accidents, the laws limit liabilities to other drivers’ insurance company by preventing claims. Other than this, these laws go further by limiting the ability to sue for additional damages.

There is a condition by some of the insurance companies where you are asked to confirm who is at fault in case a situation arises. This can be a complicated situation. Although, this no-fault policy has become a legal requirement in a lot of the states of America, at times insurance companies tend to misuse this policy for their benefit. There were many instances witnessed where insurers abused this policy.

Initial the argument for these laws was to end ambulance chasers whose only aim was to bring lame suits. However, this law came with certain baggage and consequences.

Some of its consequences include rising medical costs, fraud, and an increase in insurance cost or requirements for supplemental insurance like Personal Injury Protection (PIP) coverage. Despite that, this policy has it limits.