The Risk and Insurance Management Society says it is confident that a no- fault auto insurance system, with a strong verbal threshold, would give consumers needed coverage at reasonable prices.
It urges all the states still using fault-based auto insurance systems - or ineffectual no-fault statutes - to consider this approach.RIMS is the New York-based association representing commercial insurance policyholders.
"The number one priority of any auto insurance system," argues RIMS in a current position statement, "should be to quickly and efficiently provide compensation to injured persons. With no-fault, virtually all out-of-pocket expenses, or 'economic damages,' are compensated directly by the driver's insurance company, with minimal delay. And no-fault holds down insurance rates by avoiding costly litigation."
The source of RIMS comments is a just-published paper, Navigating Through the Automobile Insurance Quagmire - Let No-Fault Guide the Way. In it the society says that skyrocketing legal, medical and repair costs - not price gouging by insurance companies - have made it impossible to maintain resonable auto rates under a fault-based system.