Why is car insurance compulsory?
3rd party imsurance is compulsory in Australia, in order to protect you if you hit somebody. No other insurance is compulsory in Australia **DISCLAIMER-I am not a licenced insurance broker. I am not authorised to give professional advice. That's NSW law, I don't know about the other states or territories
It isn't as long as you can prove you have the financial wherewithal to withstand any lawsuit that might arise should you be in an accident. IF that accident involved a death, you had better have VERY deep pockets.
Because if someone crashes into you or break into your car you will have insurance to cover for it
Because if you crash into a rolls royce, you dont have the money to cover the repairs out of pocket.
So your f-ups don't cost others money because you don't have the money to cover them.
So that if someone hits you and damages your car YOU don't get stiffed.