: The state provides a basic layer of mandatory insurance, while private companies offer supplemental coverage for physical damage or higher liability limits. This is the model in Japan and Quebec .
Countries like , Saudi Arabia , and the UAE mandate insurance, often through a mix of state-owned and private firms. Public vs. Private: Key Differences government auto insurance programs
: State programs internalize the "social cost" of accidents, giving governments a direct financial incentive to invest in road safety and stricter licensing. Global Perspectives on Mandatory Insurance : The state provides a basic layer of
: The government handles specific types of claims, such as personal injury, while private insurers cover property damage. Australia ’s "Compulsory Third Party" (CTP) system is a prime example. Regional Highlights Primary Model Key Features Canada Public vs
, Manitoba , and Saskatchewan have full government insurers; Quebec uses a public personal injury fund with private property insurance. Australia
Personal injury (CTP) is tied to vehicle registration and often managed by government-regulated bodies, while property damage is entirely private.