> It really feels like less insurance and more government mandated protection money;
Car insurance is different from other forms of insurance. The reason car insurance is mandatory is because otherwise, if you hit someone or damage their property with your car and they successfully sue you, they could very well end up with nothing (if you're broke). With insurance, that person is guaranteed to get a payout, because the insurance company is well-capitalized enough to be certain to pay out.
In a world in which everyone drives, this is mathematically equivalent to everyone purchasing insurance against damage that happens to them or their car by someone else. The reason it's not structured this way is because (1) not everyone drives a car, and (2) it creates a moral hazard problem (having car insurance - and the consequences to taking actions which can raise your premiums - serve as a deterrent to bad driving.)
Only liability insurance is mandatory, and that would never cover your hail-damaged car, so this seems like a specious argument. You're not required to have collision and comprehensive coverage if you don't feel it's worth it.
I think that is exactly his point. The government doesn't make you get insurance that would cover hail damage to your car. It only makes you get insurance that will cover you when someone sues you for injuring them and damaging their property.
Basically Car Insurance isn't to protect you. It's to protect other people from you. Which is why someone can get in an accident while driving drunk and their insurance company has to pay.
Car insurance is different from other forms of insurance. The reason car insurance is mandatory is because otherwise, if you hit someone or damage their property with your car and they successfully sue you, they could very well end up with nothing (if you're broke). With insurance, that person is guaranteed to get a payout, because the insurance company is well-capitalized enough to be certain to pay out.
In a world in which everyone drives, this is mathematically equivalent to everyone purchasing insurance against damage that happens to them or their car by someone else. The reason it's not structured this way is because (1) not everyone drives a car, and (2) it creates a moral hazard problem (having car insurance - and the consequences to taking actions which can raise your premiums - serve as a deterrent to bad driving.)