Auto Insurance is not the Same as Health Insurance


In an interview with George Stephanopoulos, President Obama said, “right now everybody in America, just about, has to get auto insurance. Nobody considers that a tax increase.” On CNN’s American Morning show, anchor John Roberts repeated the auto insurance analogy in his interview with former House Majority Leader Dick Armey, who opposes ObamaCare: “But why is it mandate for having health insurance a bad thing? There’s a mandate for having car insurance.”

The analogy is false in several ways. Let’s look at automobile and homeowners’ insurance. Mortgage companies require homeowners’ insurance. If your mortgaged home burns down, the finance company wants to be sure that it will get its money back, so it requires you to carry insurance for their benefit. If you own your home free and clear, there is no requirement to carry property insurance. You own the property free and clear, so the risk is all yours.

Automobile insurance operates in a similar way. Once a car is paid off, there is no requirement to carry collision insurance, which covers theft, fire, vandalism, and weather damage, because it’s your car. In fact, once a car’s resale price drops below a certain point, many people drop their collision insurance since the cost of the insurance can be more than what the car is worth.

Trending: Warren’s Tax Plan Would Hit Some With Rates Over 100%

Liability insurance is a different matter. It’s required to protect other drivers and other people’s property. If you are at fault in an accident, and you damage someone else’s property and also hurt a person physically, you are liable. This is why states, not the Federal Government, require automobile insurance. There is no requirement for people to purchase insurance if they swim, rock climb, use a chain saw, skate board, work on a roof during a storm (as I did a few months back), or engage in any other type of dangerous activity since the damage they may do is only to themselves. Companies that service risk-related behavior may require a participant to sign a waiver that states the company is not liable for injury.

take our poll - story continues below

Would election by popular vote be better than the electoral college?

  • Would election by popular vote be better than the electoral college?  

  • This field is for validation purposes and should be left unchanged.
Completing this poll grants you access to Godfather Politics updates free of charge. You may opt out at anytime. You also agree to this site's Privacy Policy and Terms of Use.

So the next time you hear someone comparing auto insurance with health insurance, you’ll know what to say.

Don't forget to Like Godfather Politics on Facebook and Twitter, and visit our friends at RepublicanLegion.com.

Previous Social Security: The Government's 'Legal' Ponzi Scheme
Next Butchering the Pledge of Allegiance

Join the conversation!

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the ∨ icon to the right of the comment, and report it as spam. Thank you for partnering with us to maintain fruitful conversation.