When many parties are causally near an accident, liability law today encourages suing the deep pockets nearby, inducing too much care by deep pockets, & too little by others. Requiring all to have tort liability insurance can solve this. But law&econ my students hate this idea.
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Indeed, if poorly-executed, it can induce less care, via moral hazard and adverse selection. But point remains: What is an insurer if not a contingent "deep pocket" for rent? And why do you believe insurers will strike a better balance than deep pockets implicitly insuring now?
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The point is to make the pockets equally deep, so that isn't the main factor used to pick who to sue.
End of conversation
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