CanadaPolitics

Car insurance only covers a small number of externalities. It does not cover tire particle pollution (tires are the number one source of microplastics in the world), air exhaust pollution, noise pollution, etc etc. Even if they never got into accidents, cars would remain one of the most hazardous things to our health. Cars are also the number one killer of children, by far, and insurance doesn’t bring them back to life.

Agreed that a road tax is a good start. But a road tax wouldn’t cover the fact that bigger cars cause MUCH more of all these harms than smaller cars, so externalities remain.