The one of the questions that you see online quite often is why is car insurance mandatory, why do I have to carry that covered.
I don’t want to pay this extra cost for a car, I barely use that’s not always the case in some states cartridge isn’t mandatory. There’s very few but there are some states that don’t require it in one of the things, they do is they kind I do require you to do some steps to prove that you don’t need it. so if you have your own finances where you can pay someone’s claim or pay an accident than short they’re going to allow you to kind of self insure yourself in that basically means that you’re not going to pay those extra premiums you just have to prove that you have the income in the bank should something happen you can pay those play what do you want to necessarily do that probably not if you have 50 or $60,000 in the bank usually want to protect it those people that have them on an income or more are actually happy to buy insurance I know if I had 60 Grand in the bank I would definitely want to pay a couple hundred dollars or $100 a month to true that if something happened due to my not thinking or just me being stupid one day which happens and then I want to make sure they don’t lose the income that I hurt you back to the point of insurance insurance started back and who knows when 19 blah blah blah and it was basically ensuring ships so these chips would carry cargo 40 or whatever they were carrying and if they got raided by Pirates they would lose everything so what these guys did the Lloyd’s of London decided hey let’s start a company where we insure them if something happened will pay for their shift for pay for their content so to speak again if something happened and they paid for that that process and then in turn they took a piece of the prophet in these guys were happy to do that cuz I give him the peace of mind but also given the security that if something did happen they recovered and it’s kind of grown into something larger than that where you got a group of people collectively painting in and sometimes Timmy or Bill or Sue or whoever had a clean is going to pull out of that portion question is why is it mandatory well I believe 1927 is what I found is when they started to offer was called liability insurance and that was saying that if you were liable for something you would have to pay your portion of that amount so this is when people should realize like wait a minute why am I fixing things that are my fault Billy drove a four wheeler on my property why do I have to fix the grass why do I have to fix the fence I’m not going to drive over there and beat up Billy like maybe they did back then but so there’s now it’s what’s happened is because of the responsibility portion of the insurance that liability has created at where now everybody has security that liability some states started the kind of grow that we’re like Michigan for example you have to carry medical and that’s kind of a liability portion personal injury protection now you’ve got to have certain medical coverage in case you injure someone and a lot of it typically only results when there’s a large problem so whenever the government sets we had x amount of lawsuits the courts are getting filled up because everybody’s getting hurt things are happening how do we control this will here’s what we do is we force everybody to carry this liability portion turned that’s essentially what created the mean to Tori Insurance portion if you’re in turn the video off I don’t think you have to have insurance in Virginia I still really care anyways other states like that do require it that’s really where it came from what do you guys think let me know in the comments below do you think that liability or Insurance in general for car insurance were talking about do you think it’s mandatory cuz house insurance is it mandatory you have a loan if you own your house outright you don’t have to carry Insurance why does car insurance have to be mandatory I get it like I get when I drive on the road and I’m going to go out there and don’t have the money to pay for anything I don’t have $30 sitting in the bank or even $10,000 in the bank today down there for PayPal I will take it. Answer it so I know that if I’m going to go drive I want to have a little bit of coverage now the cost is the thing that obviously were thinking of why is it mandatory because it’s so expensive and it’s it is because all these come I started to say all was it mandatory let’s make some money on it right we want to make 3 to $0.05 on every dollar that we take in right that’s the goal and that’s what they do is try to take as much money as they can to serve the customer as well as they can but also make a profit on top of it no I’m not going to go into how Insurance Company funny actually did do a video over here so if you do want to watch that that’ll be linked as well but the main thing is the insurance is required ever since 1927 because of the liability portion that people had to carry maybe one day in the future are all going to live in a great world where nobody has a problem if I break your car I’m going to pay for it are we will just go back to trading everything where money wasn’t a thing I really really don’t mind that and then everybody was sort of equal ultimately were going to try to save as much money as possible if you are interested in doing a quote I’ll put a link down there below most of the companies I do work with you require that you had Insurance previously so that’ll give you the best rates otherwise I can refer you other places all right I will see you guys in the next one