> One of the drivers to this (no pun intended) is that so many motorists here are uninsured or underinsured (and many are not even licensed), as we are only required to carry $10k in Personal Injury Protection and $10k in Property Damage Liability, and many people carry just that.
This could drive up the price of full coverage (i.e. uninsured/underinsured motorist insurance), but you're not required to buy that. In principle it should also reduce the moral hazard of insurance -- if people have less insurance then they have to be more careful about causing damage because if they do it comes out of their own pocket instead of the insurance company's, or puts them at risk of being charged with a hit and run if they flee.
The actual problem is that too many people don't own anything anymore, because otherwise they would want to carry insurance to protect their assets. Leave too many people poor and desperate and you can see what happens.
This could drive up the price of full coverage (i.e. uninsured/underinsured motorist insurance), but you're not required to buy that. In principle it should also reduce the moral hazard of insurance -- if people have less insurance then they have to be more careful about causing damage because if they do it comes out of their own pocket instead of the insurance company's, or puts them at risk of being charged with a hit and run if they flee.
The actual problem is that too many people don't own anything anymore, because otherwise they would want to carry insurance to protect their assets. Leave too many people poor and desperate and you can see what happens.