Why is auto insurance mandatory?

InquilineKea
Sat, 07 Jul 2007 22:28:49 +0000

After all - as according to http://en.wikipedia.org/wiki/Risk_homeostasis - people tend to take fewer risks when they know that the effects of taking risks would be more devastating to them - and those risks would be more devastating to people who have auto insurance.

So then how would it benefit the government for auto insurance to be mandatory? It it due to third party injuries?