The Ridiculous “Mandatory Auto Insurance” Defense

by Stephan Tawney on December 14, 2010

I see the Obama Administration is again trotting out the argument that the federal government should have the power to force everyone to purchase health insurance because auto insurance is already mandatory. There’s so much stupid in this that it’s staggering coming from a supposedly brilliant White House.

First of all, auto insurance isn’t mandated by the federal government. It’s mandated by the states. Opponents of the unconstitutional mandate argue that the federal government lacks the power to mandate health insurance. That’s the focus on the lawsuits: The power of the federal — not state — government.

Second, states mandate auto insurance as a condition of licensing for an optional activity: Driving. You don’t have to purchase auto insurance. And you won’t be punished for it. You just need to purchase the insurance as a condition for being licensed by the state government to operate an automobile on public roads.

Finally, drivers carry insurance in order to cover damage they inflict on other individuals. Health insurance is a private product that helps you cover costs for your own health. Auto insurance is intended to ensure the person you hit isn’t left without transportation.

I’m not going to argue that my state lacks the power to mandate health insurance. The 10th Amendment grants power not explicitly given to the federal government, nor prohibited to the states or the people, to the states and the people. I’m actually quite convinced that my state would have the power to mandate my purchase of health insurance.

But we’re not talking about state power here. We’re talking about the federal government’s power. And that power doesn’t include mandating that everyone purchases a specific private sector product. Trotting out an example of legitimate state power in order to defend illegitimate federal actions is shameful and ignorant.



One Response to “The Ridiculous “Mandatory Auto Insurance” Defense”

  1. Ted Says:

    In California, it is NOT a requirement to BUY auto insurance. You can post a $35,000 bond, deposit cash with the DMV and be in compliance. In other words, you’ve got to show that you can pay. It’s called the FINANCIAL RESPONSIBILITY LAW.

    Providing evidence of financial responsibility

    In some cases, you may also be requested to submit additional insurance information to DMV by providing:

    * A document or identification card from your insurance company.
    * A DMV authorization letter, if you are a cash depositor or are self-insured.
    * California Proof of Insurance Certificate (SR-22) for broad coverage or owner’s policy.
    * Evidence that the vehicle is owned or leased by a public entity defined in Government Code §811.2.
    * A Notification of Alternative Forms of Financial Responsibility (REG 5085) (PDF) form for vehicle covered by a commercial or business policies and being registered for the first time.
    * A statement of facts (REG 256) (PDF) certifying the motor carrier has evidence of insurance on file with the Public Utilities Commission or DMV pursuant to CVC §34630.

    http://www.dmv.ca.gov/forms/reg/reg5085.pdf

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