Discount Auto Insurance Quotes in No Fault States

How to Find Discount Auto Insurance Quotes

Enter your postal code to find discount auto insurance quotes now. In 1971, the cost of property damage coverage rose by 38.4 per cent, after the insurance companies’ successful lawsuit overturned the 15 per cent across-the-board reduction. In 1972, a further increase of about 10 per cent was added. In two years, the cost of property damage increased by nearly 50 per cent over the cost in 1970.

In 1970, premiums in Massachusetts amounted to about $140 million for property damage, which protects other people’s property, plus $177 million for physical damage coverage, which protects the insured’s own automobile. The 1970 total is $317 million for combined property damage coverages. In 1972, the costs rose to approximately $475 million—an increase of $158 million.

The final indignity thrust on the public is the cost of the third option. Coverage under this option is 70 per cent less than the 1971 property damage rate. This appears to be a major saving until one sees that the charge, which amounts to 30 per cent of the 1971 rate, protects the insured for nothing. He is forced to buy this coverage, it is compulsory- he cannot drive his car without it.

Keeping in mind that tort suits under Massachusetts no-fault property damage are forbidden against other Massachusetts drivers, the captive purchaser of this coverage is left without a means of getting money to repair his car even when he is blameless. He gets nothing from his own company; nor can he sue. He is paying 30 per cent of the 1971 property damage rate for virtually zero benefits.

It will take several years to measure the total economic impact of no-fault. Early returns in Massachusetts, however, show that the companies have made an unconscionable profit and that the insurance-buying public in 1972 is paying considerably more for inferior coverage when compared to costs and benefits available under the fault system. Clearly, the political opportunism of 1970 has led the consumer down the garden path.

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