Public Auto Insurance

Public Auto Insurance

Public auto insurance is a fairly simple idea.  It works just lake many of the other government funded or subsidized programs.  The idea behind public auto insurance it to give affordable coverage to anyone who needs it.  There may be some terms and conditions, but the general idea is the same.  Public programs such as these are thought by some to improve the standard of living for the lower classes or the standard of living for everyone in general.

How it is Paid For

Despite what some people may think, public auto insurance is not cheaper over all.  To pay for programs like this the government must tax either a specific product or products or impose a general income tax if there is no general budget surplus from trade with foreign countries.

Public Auto Insurance Pros and Cons

Arguments for:
    •    Provides affordable auto insurance to lower income people
    •    Protects lower income people in the case of a car accident
    •    If applied to everyone it is more convenient
    •    May lead to an increase in insured drivers
    •    It is charitable

Arguments against:
    •    If it is not earning a profit the money comes out of tax payer pockets
    •    Like many government programs it may be inefficient
    •    It provides a service to others at the expense of others
    •    There is room for error which means money taken from   people is wasted
    •    Expands the role and budget of government
    •    It is generally considered unfair or unjust to tax one person to give to another (this is because any tax imposed on a person means that that person is working for a certain period of time to finance someone else)
    •    It is not vital to a country as a whole and is thus outside the role of a constitutional republic government
    •    It may be used as a stepping stone for other social projects, though this is not definite it is a general trend