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There is always a potential risk every time one walks out of the house – crime, and high rate of car accidents, and a fast living pace makes it becomes impossible to avoid any sort of accidents which cause damage to people and property. Thus, auto insurance, either public or private becomes important.
Private auto insurance is considered to be a free-market insurance competition in various states. A private auto insurance company is generally free to operate without any hindrance of the government but it has to confirm the practices and policies which it follows to the government. There are a number a private auto insurance and customers choose the best one according to their need and change them according to their will.
The public auto insurance is operated by the government and customers have to buy insurance coverage from the government run insurance company. Customers can also buy insurance coverage which is supplementary from private insurance companies if they wish to do so. There is no competition as the private insurance companies.
InCanada, public auto insurance has given the benefit of lower auto insurance premiums. Manitoba,British Columbiaand Sasketchewan have a public system and the customers in these states pay a lower rate than states with private insurance system. This is due to the undercharge by public insurers for insurance coverage and they rely upon tax payer dollars in order to fund the shortfall. Along with public and private auto insurance there are self mandated insurance programs which are not public but they are those who just force the private insurance companies to serve those whom they actually do not serve.
