The effects of a choice auto insurance plan on insurance costs
By: Allan F. Abrahamse, Stephen J. Carroll.
Contributors: Carroll, Stephen J., 1940-; Institute for Civil Justice (U.S.)
Publisher: Rand
Published: 1995
Place of publication: Santa Monica, CA
Language: eng
Number of pages: 55
Subjects: Insurance, Automobile -- United States -- Costs; Insurance, No-fault automobile -- United States -- Costs
Description: Choice auto insurance would let drivers choose between traditional auto insurance and a no-fault plan. This report estimates how choice auto insurance would affect auto insurance costs in each state. The authors analyze the cost effects of a choice between tort and absolute no-fault in each of the states that now relies on the traditional tort system. (Absolute no-fault means that motorists neither recover nor are liable for noneconomic loss for any auto accident injury). For states that already have some form of no-fault auto insurance, the authors consider a plan offering a choice between the state's current no-fault plan and absolute no-fault. Key findings are that if insurance premiums are proportional to compensation costs, drivers who choose absolute no-fault should save about 60 percent on their premiums for personal injury coverage. The plan will have little effect on drivers who opt for coverage under their state's current system.
Notes: Includes bibliographical references (p. 41-55).
"Institute for Civil Justice."