No-Fault Approaches to Compensating Auto Accident Victims
This study estimates the effects of a broad range of alternative no-fault auto insurance plans, compared with the traditional tort system. A simulation model relating accident victims' injuries and losses to their expected auto insurance compensation under a specified no-fault plan is applied to a representative sample of auto accident victims in the tort states. Their estimated compensation under each of several no-fault alternatives is then compared to their actual compensation. The results indicated that no-fault can yield substantial savings over the traditional system, or may increase costs substantially, depending on the no-fault plan's provisions. Regardless of plan provisions, all no-fault plans reduce transaction costs, match compensation more closely with economic loss, reduce the amounts paid in compensation for noneconomic loss to less seriously injured people, and speed up compensation.
- Format:
- Paperback, 23 Pages
- Year:
- 1993
- List Price:
- Free
Document Details
- Copyright: RAND Corporation
- Availability: Available
- Format: Paperback
- Pages: 23
- List Price: Free
- Document Number: RP-229
- Year: 1993
- Series: Reprints
Originally published in: Journal of Risk and Insurance, v. 60, no. 2, 1993, pp. 265-287.
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