Insurance Reform To Boost Auto Industry

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.

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
losses.

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.