What is a auto insurance public policy 

Their are various countries which have made compulsory auto insurance before the vehicle is on the road.Countries like U.S. United Kingdom,Australia,India, and others too have been following it from past years .In their public policy most jurisdictions relate insurance to both the car and the driver, however the degree of each varies greatly.

During 1994 there was a study conducted by Jeremy Jackson and Roger Blackman which showed, consistent with the risk homeostasis theory, that increased accident costs caused large and significant reductions in accident frequencies.

Why is it important to have one ?

Insurance helps to hedge out some predetermined risks as well as uncertanities.This is usually the minimum required by law is third party insurance to protect third parties against the financial consequences of loss, damage or injury caused by a vehicle.