How does the insurance provided by crown corporations operate?

Crown corporations that provide insurance in Canada, such as the Automobile Insurance Corporation in certain provinces, typically operate under a compulsory insurance model for vehicle owners. This means that vehicle registration cannot occur without valid proof of insurance, making it legally necessary for drivers in those provinces to have coverage.

Compulsory insurance ensures that all drivers contribute to a broader risk pool, which can help stabilize costs and provide necessary protection for individuals involved in accidents, ensuring that they have access to compensation for injuries and damages.

In contrast, voluntary insurance models allow drivers to choose whether or not to purchase insurance, which is not the case with crown corporations in provinces where it's required. This helps elucidate why the other options do not hold in this scenario, as they either imply a choice exists or misrepresent the focus of coverage regarding high-risk drivers or government benefits.