Printer Friendly

GOV. CASEY SAYS AUTO INSURANCE REFORM IS REAPING BIG SAVINGS

 HARRISBURG, Pa., Jan. 4 /PRNewswire/ -- Gov. Robert P. Casey today called Pennsylvania's auto insurance reform law "an unqualified success" that in its first 18 months has saved state motorists $1.4 billion in insurance premiums.
 "It's been so successful, Pennsylvania motorists are paying less in average annual premium dollars today than they were in 1989, the year before our reform law took effect," Casey said. "Five million Pennsylvania households have either had their rates lowered or stabilized because of the new law.
 "When it comes to reforming our auto insurance system and lowering our auto insurance premiums, Pennsylvania leads the nation. We made it happen like no other state in the nation."
 Casey said the reform effort created an auto insurance program that not only gives drivers some options to reduce their premium costs, but also gives them the ability to tailor their coverage to meet individual needs.
 "We achieved savings without shrinking the insurance market in Pennsylvania -- not one major insurer has withdrawn from the market here," Casey said. "And, their experience demonstrates this law permits them to sell their insurance at much more affordable rates.
 "We managed to put the brakes on auto insurance rate increases. Where these increases were averaging 10- to 20-percent before the law, they're averaging 4 percent today."
 The governor said the $1.4 billion saved by Pennsylvania consumers was accomplished through capping medical costs, providing a limited tort option and allowing policyholders to select options tailored to their needs.
 "Our rates are lower than New York, New Jersey, Maryland and Delaware."
 Casey said the state's auto insurance reform has caused average annual premiums to drop from $720 in 1989 to $686 in 1991.
 The governor also said the law has enabled the state to reduce the number of uninsured registered vehicles from 700,000 in 1989 to 460,000 in 1991.
 "In two years we've cut the number of uninsured passenger vehicles on our highways almost in half, thanks to the provisions of the law requiring proof of insurance at annual inspections; increasing penalties for uninsured motorists, and revoking registrations and licenses for driving without insurance," Casey said.
 The governor also said additional savings are available to motorists if they take time to carefully evaluate their policies, and make informed decisions on options such as limited tort.
 "The so-called limited tort option preserves a driver's right to sue for disabling or disfiguring injuries, or for lost wages or out-of- pocket medical expenses," Casey said. "What you waive is your right to sue for more than out-of-pocket expenses when your injuries are not serious -- the so-called 'pain-and suffering' lawsuit."
 Consumers seeking additional information about auto reform options should contact their insurance agent or the state Insurance Department Press Office, 13th Floor, Strawberry Square, Harrisburg, Pa., 17120, telephone: 717-787-2317.
 /delval/
 -0- 1/4/93
 /CONTACT: Susan Woods of the Commonwealth News Bureau, 717-783-1116, or Amy Dugan of the Department of Insurance, 717-787-3289/


CO: Pennsylvania Department of Insurance ST: Pennsylvania IN: INS SU:

MK -- PH019 -- 1376 01/04/93 14:54 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 4, 1993
Words:506
Previous Article:NORTHEAST BANCORP STOCK PURCHASER FILES SUIT
Next Article:CompUSA Inc. FISCAL 1993 SECOND QUARTER SALES UP 64 PERCENT
Topics:


Related Articles
Auto insurance industry turns up heat on government plan.
STATEMENT BY WALTER COSTELLO, PRESIDENT OF THE MASS. ACADEMY OF TRIAL ATTORNEYS REGARDING, GOV. WELD'S AUTO INSURANCE LEGISLATION
AAA MICHIGAN DEEPLY DISAPPOINTED WITH LEGISLATIVE ACTION
AAA RATE MAILING PROVES REAL PROPOSAL D SAVINGS
PENNSYLVANIA LEGISLATIVE BUDGET AND FINANCE COMMITTEE CONCLUDES NEW AUTO LAW IS SAVING MOTORISTS MONEY
ERIE INSURANCE URGES PASSAGE OF PENNSYLVANIA FRAUD BILLS
South Carolina reforms auto insurance: 1997-98 South Carolina Act #260 motor vehicle financial responsibility act title 56, chapter 9 as amended.
O Canada! The Canadian auto market has undergone some turmoil in recent years, but industry leaders are hopeful that new regulations will help return...
Market repair: headed for a dead-end street, Massachusetts looks to change its auto insurance system.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters