Study: No-Fault Not at Fault.A new study has found that states with no-fault auto insurance systems don't have more accidents than states with a tort tort, in law, the violation of some duty clearly set by law, not by a specific agreement between two parties, as in breach of contract. When such a duty is breached, the injured party has the right to institute suit for compensatory damages. system. The study, by the Rand Rand See Witwatersrand. rand 1 n. See Table at currency. [Afrikaans, after(Witwaters)rand. Institute of Civil Justice debunks a myth often supported by opponents of a no-fault system, said Robert Hartwig, chief economist The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis. It is distinguished from the other economist positions by the broader scope of responsibility encompassing the at the Insurance Information Institute. "Basically, it turns on its head a lot of the conventional wisdom in the notion that a no-fault system causes more accidents," Hartwig said. "There's no evidence that drivers in a no-fault system tend to drive more negligently neg·li·gent adj. 1. Characterized by or inclined to neglect, especially habitually. 2. Characterized by careless ease or informality; casual. 3. Law Guilty of negligence. than other drivers." No-fault auto insurance requires drivers to carry personal injury protection insurance that covers them, regardless of fault, for economic losses stemming from an auto accident and prevents them from suing for pain and suffering. Under a traditional tort system, all drivers must carry liability insurance that covers third parties for injuries caused by the insured driver. Under the traditional tort system, insurers have forced accident victims to prove in court that the other driver was at fruit, so the other driver's insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. would pay the victims' claims. Some people believe a no-fault system reduces overall costs by reducing the number of lawsuits filed, While the study didn't address that theory, it did overturn a long-held belief by some that drivers in a no-fault system would be more careless careless adj., adv. 1) negligent. 2) the opposite of careful. A careless act can result in liability for damages to others. (See: negligent, negligence, care) because the issue of who caused the accident wouldn't affect their coverage, said David Loughran, associate economist with Rand and the author of the study. |
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