Here in British Columbia, the car insurance system recently received a massive overhaul. Car insurance has long been a public monopoly that many complained led to higher prices than in other provinces. That much may be true. But the recent overhaul involved eliminating the right to sue in most cases, instead requiring the insurance company to cover the long term healthcare costs of the injured. No longer do the victims of accidents have to sue for a settlement.

Of course it’s not perfect. Some people have been injured and then felt they received less care than they would have otherwise under the litigious system. But on balance I think this change is likely for the best. It closed of an externality that previously led to a great deal of unnecessary expense (on lawyers), recognizing that car accidents are largely random.

At a bare minimum, everyone should purchase uninsured motorist insurance to the maximum degree possible. If you are injured by someone from out-of-state or someone who has no insurance at all, you will need it.