When we established laws that required vehicle owners to maintain insurance, we started down this slippery slope.
My ex father in law said when automobile insurance became mandatory that it was the beginning of the end for the US. He said it was just a matter of time, that we had signed over our country to insurance companies and doomed it to statism.
And he was right.
I totally agree. In fact, my first run in with the law was with this bullshit, and it set me up for a lifetime of appreciation of the libertarian perspective.
When I was 17 (circa 1981) I borrowed my grandmother's station wagon to help my girlfriend move into her college dorm in KU. We lived in Missouri, which had yet to cave to the mandatory insurance crap, and my grandmother rarely drove her car, so she didn't carry insurance. But KU is in Lawrence, Kansas which had just imposed the mandate.
To make a long story short, just over the state line we were T-boned by some dipshit who ran a stop sign. It was totally his fault - no one disputed it. In court, the net result was that I was fined $275 (and points levied against my license) for not having proof of insurance. The asshole who hit me got a $50 fine for running a stop sign and causing an accident.
Of course I fought it, lost, and was threatened with contempt of court (of which I had plenty) for stating "clearly the state of Kansas has no problem with running a stop sign and almost killing someone. It's the people without insurance who are the real threat".