The Effects of a Choice Auto Insurance Plan on Insurance Costs

Allan Abrahamse, Stephen J. Carroll

ResearchPublished 1995

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.

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  • Copyright: RAND Corporation
  • Availability: Available
  • Year: 1995
  • Print Format: Paperback
  • Paperback Pages: 74
  • Paperback Price: $13.00
  • Paperback ISBN/EAN: 978-0-8330-1641-6
  • Document Number: MR-540-ICJ

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RAND Style Manual
Abrahamse, Allan and Stephen J. Carroll, The Effects of a Choice Auto Insurance Plan on Insurance Costs, RAND Corporation, MR-540-ICJ, 1995. As of September 13, 2024: https://www.rand.org/pubs/monograph_reports/MR540.html
Chicago Manual of Style
Abrahamse, Allan and Stephen J. Carroll, The Effects of a Choice Auto Insurance Plan on Insurance Costs. Santa Monica, CA: RAND Corporation, 1995. https://www.rand.org/pubs/monograph_reports/MR540.html. Also available in print form.
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