Here in New York State, it’s mandated that all automobiles must be covered by auto insurance. If my fellow New Yorkers are able to revoke this policy, what do you think would be the best recourse if you were driving along the next day and got hit by an indigent bum who had just dropped his/her coverage and lacked the means to compensate you for damages to your automobile and/or person?
For most people, I would imagine that you could bring the matter to court and receive payment for damages if he/she didn’t have insurance, but under a worst case scenario, what would you envision to be solutions that auto manufacturers, auto insurers, individuals, and/or anyone else would utilize or create to deal with such an occurrence?
The first thing that comes to mind a new form of debtor’s prison from the olden days, but that still leaves you in the lurch for fixing your car and paying any medical bills.
Is it possible that your insurer would insure you not only for accidents of your fault, but also those of others? I can’t quite wrap my head around that one.
Not sure how it is called in english but in Germany there is a “Kasko” insurance. It pays if your car is damaged. With no mandated liability insurance there would of course be insurances that pay your bill for repairs and medical care in case of an accident that is not your fault. Most probably those insurances would go after the money themself in case New York law obliges payment. That would lower insurance policies and the insurance would in effect give you a guaranteed, instant payment as opposed to the struggle of getting the money yourself. This has some similarity to a loan.
I live in Tennessee and it’s also mandated for all cars to have insurance - but guess what? Lots don’t. So even though the state mandates it - you are still screwed if you get hit by someone without insurance. No different than you are if there was no mandate. The state tickets and/or arrests the other driver - but that doesn’t help you at all financially. You are completely out of pocket - unless you can sue the driver civilly - which is usually futile.
So everyone with insurance gets uninsured motorists coverage as an extra. It’s quite cheap here - about $25-50 per year.
That (uninsured motorists coverage) would be the easy answer. I’m really surprised it’s not offered everywhere.