The Crminalization of Insurance (or Lack Thereof)

The Insurance Journal notes the first person to be charge with a felony under a new Illinois law for driving without proof of insurance.  I can’t wait to see how much this costs the tax payers of Illinois in terms of judicial resources. 

In a similar vein to last month’s discussion of whether we need mandatory auto insurance, the commenters at Hit and Run have taken this on in a mixed discussion about health underwriting and the need for mandatory auto insurance.

Here’s a nice mix of the two….

If my auto insurance worked like my health "insurance" it would pay for my oil changes. God only knows what the garage would charge the insurance co for those oil changes.

The one I really love is medical insurance covering pregnancy. That strikes me as about the same as my homeowners insurance paying for me to add an extra room to my house.

Update:  George Wallace also comments on the insurance economics aspects of the Hit and Run post which, in turn, was commenting on the Washington Post’s misunderstanding of adverse selection and moral hazard.