Financial exposure and the car insurance that protects against it
Why is car insurance made such a huge issue in the United States and much of the Western world? The reason is risk, risk of absolutely traumatic and catastrophic proportions. Think about it. You take your car out every day. Do you ever think about the costs involved in and about a collision? Forget about the vehicles involved for a minute, and consider the medical costs. A collision at just 15 miles and hour can result in some very serious injuries.
This is what the government was thinking about when it was mandated in many Western countries that drivers purchase car insurance in order to drive on open public roads. They didn’t want to see what’s been happening to the uninsured about the medical and healthcare sector: a worrying amount of bankruptcies due to medical bills. In the past, collisions and other sorts of car accidents have sent families and households into a financial downward spiral.