In response to the now dead comment about how government-mandated insurance perverts the market, I agree that's a bigger departure from the idealistic free mark

In response to the now dead comment about how government-mandated insurance perverts the market, I agree that's a bigger departure from the idealistic free market model. However cookiecaper is referring to moral hazard: where people will make reckless decisions because insurance is essentially paying someone else to absorb uncertainty. When the risk is assumed by another, you take bigger risks. So there's increased uncertainty. And it has negative externalities, so yeah: another warp in the ideal free market model. But that's all the more reason why insurance companies want (and IMO should have) better insight into who you are: so the risk is more accurately quantifiable.