If a state requires all drivers to purchase auto insurance, insurance companies still face the problem of

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Requiring all drivers to purchase auto insurance does not eliminate the challenge of pricing insurance correctly. Insurance companies must still accurately assess risk and set prices that cover their costs and generate sufficient profits. If prices are set too high, customers may seek coverage from competitors or choose not to purchase insurance at all. If prices are too low, insurance companies may face financial losses or have to limit their coverage options.

If a State Requires All Drivers to Purchase Auto Insurance