Cover: How Would a ''Choice'' Auto Insurance Plan Affect the Insurance Costs and Compensation of Accident Victims?

How Would a ''Choice'' Auto Insurance Plan Affect the Insurance Costs and Compensation of Accident Victims?

by Lloyd Dixon

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Abstract

This research brief describes work documented in The Effects of a Choice Automobile Insurance Plan on Insurance Costs and Compensation: An Analysis Based on 1997 Data (MR-1134-ICJ).

Excerpt: Escalating auto insurance premiums have been a major public policy issue at the state level for the last three decades. No-fault auto insurance, born in the 1960s, was one response. It offered cost savings and speedier, more certain compensation to auto accident victims. But because it limits claimants' ability to seek compensation through the courts, most states have found it an unappealing alternative. Choice auto insurance, initially proposed in 1986, addresses this concern by allowing drivers to choose between a no-fault plan and a somewhat modified version of their state's current auto insurance plan.

This report is part of the RAND Corporation research brief series. RAND research briefs present policy-oriented summaries of individual published, peer-reviewed documents or of a body of published work.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.