Insurance Reform To Boost Auto Industry

Discussion in 'General Motoring' started by Nomen Nescio, Nov 5, 2003.

  1. Nomen Nescio

    Nomen Nescio Guest

    If you had the space, wouldn't you keep a couple of modern-day classics and
    a few motorcycles to boot? For most of us, the limiting factor is auto

    Insurance needs a complete reform. A long time ago, it was suggested by
    somebody extra smart that insurance could be universal (everybody covered)
    with a surtax at the gas pump. So, if you rode that Black Shadow once a
    year, you could for about 25 cents per gallon - maybe a dollar a year. And
    that would be sufficient, since your exposure to accident would be only a
    few hours; you pay proportionate to use.

    Everybody would be covered for public liability and property damage up to
    state minimums this way. If you wanted more protection or higher limit
    protection, you could buy a supplemental in the usual way. The premiums
    would be greatly reduced because its the first $25,000 that you pay most of
    your premium for; the preponderance of losses are small. To go from
    $25,000 to $1,000,000,000 only costs about $200 a year for the umbrella.
    Also, since everybody pays into the insurance pot, there are no longer
    uninsureds. It is the uninsureds who cause accidents but pay nothing for
    them that drive up your premiums so much. Also, a uniform per gallon tax
    would level the playing field:

    Why should a newly licensed teen with a PERFECT DRIVING RECORD pay
    thousands per year when an illegal alien who deliberately drives his car
    into that teen's car to collect from him, pays no premium at all? Patently
    and grossly unfair and a complete travesty of justice. Please complain to
    your Congressman for me.

    The administration of such a pay as you pump insurance system is easy. The
    giant pot would be the fund. In case of accident a general adjuster would
    divy out the payments to the victims. The one who caused the accident
    would be punished by points on his license. Too many points from at fault
    accidents and guilty pleas for ticket violations and he gets his license
    suspended or revoked. When suspended or revoked he causes no more losses
    and has to pay no more insurance at the pump. Driving without a license
    gets his car impounded and seized and 30 days in jail. There will be few
    or no unlicensed drivers. Driver licensing thus becomes the insurance
    selection now done unfairly by exhorbinant rates and outright refusal to
    cover. (Teens cannot just walk in cold and buy insurance at AllState; they
    wind up with "assigned risk", poor limits at sky-hi rates).

    The pay as you pump tax can be adjusted yearly according to state wide
    loss. Traffic fines can be increased somewhat also, with a portion going
    into the insurance fund on the theory that bad driving causes accidents and

    This is about the most perfect scheme every devised. You can own a whole
    collection of cars. It will boost the car restoration industry. The way it
    is now you are hit with $500 a year minimum for insurance (more likely
    more) for minimum coverage just to legally license a car, EVEN IF YOU DON'T
    DRIVE IT!! Under my plan it would cost you only state tags, a nominal
    amount of money.

    Insurance companies don't like this idea of mine because I didn't originate
    it and besides they want to put the screws to you and keep you under their
    thumb and watch you squirm if you dare to preserve the old relics. No
    wonder you see all those fine motor cars on the junk heap. Its the
    insurance, man.
    Nomen Nescio, Nov 5, 2003
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