Purpose Of Car Insurance

Explain the purpose of automobile insurance and examine the extent to which automobile insurance does encourage risky behavior. The purpose of automobile insurance is to repair or replace damages caused by hazardous situations. Insurance can give a motorist a sense of freedom from financial distress. Unfortunately insurance does encourage risky behavior. Knowing that you personally may not have to incur cost repairing another person’s vehicle may sway risky driving practices. Speaking for myself, when I dropped my insurance to liability I was more cautious to my surroundings. I drove slower and was hesitate before pulling out in front of other cars.

Many professional athletes purchase insurance against career-ending injuries. Would