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Why Do We Have Mandatory Auto Insurance Workmens Auto Insurance _____________________________________________________________________________________ By Hanely - http://workmensautoinsurance.net/ The term compulsory automobile insurance, unfortunately, is subject to several interpretations and this fact has resulted in no end of confusion. It is easily conceivable that the motorist might be required by law to insure his car against fire, theft, collision, earthquake, glass breaking, etc., but such types of insurance all apply to the car as such, and are not directly related to the problem which arises when the owner or operator of a car injures or kills some other person or persons.Therefore the controversy centers about the meaning of the words "liability" and "compensation." In certain respects these two types of insurance are diametrically opposed to each other. Click Here

Especially this is true from the viewpoint of the injured person attempting to get monetary remuneration. His chance of success differs greatly in respect to these two varieties of insurance.If we disregard for the moment certain exceptions and qualifications, we may say that mandatory compensation insurance means that each car owner would be required.


To pay an annual premium to either an insurance company or to a state fund for the purpose of paying benefits to victims of auto accidents, or to their dependents in case of death.The question of fault would be raised only incidentally, if at all, the courts having nothing to do with the case; and with few exceptions, the injured person would be certain of receiving compensation based upon a prescribed table of benefits.An automobile compensation commission would consider the facts in each case, as does an industrial commission in connection with workmen's compensation, and would make awards accordingly.

Thus the whole question of fault would be disregarded, largely on the twofold assumption that fault is difficult to determine in motor accidents and that such accidents, no matter whose fault they are, create social problems of dependency which can best be met by motorists as a group.

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Workmens auto insurance