Arguments in favor of mandatory auto insurance
Advocates of mandatory auto insurance depend on the assumption that, at least a portion of the time, the person at fault in a car accident won't have the option to pay for the damage to the other person's car. Because insurance has been mandatory in many states for such a long time, the data to demonstrate this theory is somewhat sparse.
Until 1956, when the New York legislature passed their necessary insurance law, Massachusetts was the only state in the U.S. that expected drivers to get insurance before registration. North Carolina followed suit in 1957 various other states passed similar necessary insurance laws. Since the beginning of automotive insurance conspires in 1925 nearly every state has adopted a necessary insurance scheme. This early financial responsibility prerequisite only required vehicle proprietors to demonstrate financial responsibility after their first collision.
This drove Massachusetts and Connecticut to create the principal financial responsibility and obligatory insurance laws. Connecticut's 1925 financial responsibility law required any vehicle proprietor associated with a collision with damages over $100 to demonstrate "financial responsibility to satisfy any claim for damages, by reason of personal damage, to, or death of, any person, of at least $10,000." Massachusetts also acquainted a law with address the issue of collisions, yet theirs was a mandatory insurance, not financial responsibility law. It required automotive liability insurance as an essential to vehicle registration.
With the invention of the automobile in the late nineteenth century came the inevitable reaction of automobile collisions. As automotive collisions increased in recurrence, it became clear that, in contrast to other torts, which depended on personal responsibility, there was a likelihood that automobiles would should be administered by laws because "[t]here was no chance to get of assuring that despite the fact that fault was assessed the casualty of an automobile collision would have the option to gather from the tortfeasor."