Why is insurance compuslary in some countries?

Question

I'm talking about Auto Insurance. It's optional, but reccomended in NZ. I'm just curious.

Answer 1

I  think that the reason liability is required is to ensure that if, someone hits you and causes severe damage to your body and/or car--- that you will at least have some assistance to pay for your bills etc. That is, the insurance company will pay a certain amount of damages to you. Without it, you might get stuck paying a large bill for something you have no control over.