With a state funded scheme for personal injury, the lawyers would struggle for business - I assume the government would develop a fairly rigid set of compensation payouts.
They may even argue that as the state already steps in to support those in need, any further compensation would be low or limited. The question may be very simple - would you rather go to court or arbitration to battle the governement or an insurance company.
Relying upon the other driver to have insurance for property damage would be similar to now - if they don't have insurance they are unlikely to be able or willing to pay in the event of a claim.a
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