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States mandate auto insurance. Can you give me any information as to why states do not specify what information auto insurers can require for citizens to buy mandatory auto insurance?
Probably because insurance companies pay for the legislation they want, or the legislation they want to avoid. It's called campaign contributions, but it should be known as legislative bribery.
REPLY:
What is No-Fault Insurance?
No-fault insurance is a system adopted in some states that essentially bypasses the conventional legal procedure which finds fault in an accident. (This is the procedure by which you hire a lawyer, file suit and possibly go to court to prove the accident was the other guy's fault) No-fault simply does away with the concept of one party or the other being at fault--no lawyers, no court, no judge, no jury, no lengthy lawsuits against the other party. This is considered beneficial to taxpayers, because it eliminates costly legal proceedings that the state must manage, and to insurance policyholders, because it helps keep rates down.
If you are insured in a no-fault state and have an accident, you don't go after the other driver. You contact your own insurer and file a claim. Your own insurance policy guarantees you immediate compensation for damages, medical expenses, lost wages, etc.
Does what you've just read sound familiar? Anyone that has read much of my pages will notice the above, sounds like what I've been saying. But from what I've seen (read) lately the familiarity stops there. I've been checking search engines lately and have run into a lot of negative opinions on No Fault. The things most of the people are complaining about, doesn't sound like the system I'm suggesting. I've always tried to avoid calling my idea "NO-Fault". Its based in the No-Fault theory, but in my opinion it shouldn't go much past what has been described above.
One thing not mentioned above is the "Special Circumstances". There's always going to be examples of exceptions. Like;
1) Being involved in an accident with a commercial vehicle (Fault could matter in this case)
2) In the case of disability you should be able to file suit against your own insurance carrier.
What it boils down to, there should be exceptions and special circumstance, provided for in the governing law.