Auto Insurance
Competition Can Make Auto Insurance Affordable
Your editorial ‘’The Only Real Fix for Auto Insurance'’ (Nov. 18), about California’s Proposition 103, raises several concerns. You say ‘’the only way to lower costs is to create a ‘no-fault’ compensation system,'’ but good no-fault does not lower auto insurance costs.
As Federal Insurance Administrator, I encouraged two Presidents to support national no-fault auto insurance, but the reason was equity: under the tort system, people with small economic damages tend to receive several times their damages while seriously injured people get substantially less than their costs. We still support no-fault laws, but not as a cost-control mechanism.
You say there has been ‘’a competitive California insurance market.'’ This is belied by the fact that in California, as in all states:
More : query.nytimes.com
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