Evening star., 1953-02-23
ABC's Of insurance.;
D. {. Lags With Only
4O9o Driver CoVeraqe
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provement over an older type,
requires that in any serious ac-
cident each driver (regardless of
who is at fault) must show his
ability to settle for the probable
amount of damage and injury.
What is more, he must show his
ability to pay in event of future
accidents. Lacking this proof,
his right to drive is taken from
him until he can conform to the
law. Ohio will adopt such law
March / and New Jersey on
April /, bringing the total num-
ber of States so covered to Al.
Maryland and Virginia have this
type of law.
8. In New York, which now
has a security type" safety re-
sponsibility law, Gov. Dewey and
a special joint legislative COM
mittee are backing a 40 and
20" compulsory insurance plan
which is bound to have roper
cussions.
4. The District and the re-
manning six States-Arkansas,
Kansas. Mississippi, Missouri.
North Carolina and South Da-
kota-have the "old type" law
without the security provision.
This law requires that if driver
is adju6ged at fault in a court
of law and damages are assessed
against him, he has 80 days in
which to settle. If he fails to
satisfy the judgment in that
time, his right to drive is re-
voked until he can comply with
the court order. If the court
calendar is jammed, it might be
years after the accident before
he lost his license.
5. North Dakota, in addition
TO having the security type law.
has an "unsatiSf1ed judgment
fund" This fund is used IN
such an event as this: You are
hit by a car, and an award Of
$4,000 is made to you. But you
cannot collect, because the man
who hit you was either a pauper
or a hit-run driver. You get
your $4,000 out of the unsatisfied
judgment fund, which is oper-
ated by the State, and the State
undertakes to collect from the
guilty party.
d. C. Has No Security Law.
In the District, where no
security-type law and no un-
satisfied Judgment fund exist
and where only 40 per cent of
the drivers are covered-your
chances Of collecting after a
wreck are relatively slim. In
the Maryland and Virginia sub
urbS. where there are sitter
laws and 80 per cent coverage,
your chances are quite good.
This raises the question of
what kind of insurance a driver
needs to keep himself fully COW
cred.
There are, basically, two types
Of insurance. Both are designed
to protect the man who buys the
insurance, but 1t is common to
say that one type protects the
buyer and the other protects the
public.
The form Of insurance which
most persons agree they cannot
do without is the type that
protects the public" This Is
known as bodily injury-or pub
DC hability-and property dam
Rge. It can be obtained In
amounts aS low Is "5 and l0'''
tho minimum In Massachu-
settS-up to or above 400 and
9OO."
Tackled on to this form of in
gurance iS O rider-available at
nominal coSt-covering medical
fees up to $500 for each bona
f1de. non-paying passenger in
your own car. There are usual
~ towing and bail-bond riders
As well.
The second form, which "pro-
tects the buyer" covers collisions
and such things as fire, theft,
vandalism and glass breakage
IN your own car (the latter is
called "comprehensive").
Collision Is normally referred
TO as "such-and-such-a-flgure
deductible." This means that,
Il you have $50 deductible, the
policy covers repairs to your
car except for the first $50.
II you have Q $500 wreck, the
Insurance company pays $3.50
and you pay the rest. # you
have q $49.95 accident, the COM
pany pays nothing.
Every Driver Needs It.
That every driver needs bodily
injury and property damage in
surance Is considered as much
q rule of the road these days
as that he should keep to the
right and stay sober. Yet this
Is the kind that so per cent of
the drivers in Washington do
not have.
Why does a person need this
form Of insurance? In the first
and most important place, it
protects him against humping
legal judgments. In the second
place, 1t gives him capable
counsel without cost. In the
third place, it gives him the
satisfaction Of knowing that the
person he has injured in an I'M
avoidable accident will be taken
care Of financially.
The cost of this insurance
has increased tremendously since
before the war. The reason is
that recent court judgments
have indicated that juries are
inclined to be increasingly gen.
erouS with other peoples money.
And these judgments tend to
show that there is no limit to
the amount jury can award.
The IS and 10" Of MaSsachu-
AAtfg law USad IN he considered