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- Title
Uninsured Motorists Insurance: An Alternative Financing Mechanism.
- Authors
Miller, Elbert G.; Hoffer, George E.
- Abstract
Over the last 60 years, virtually every state legislature has wrestled with how to guarantee compensation to parties injured by financially irresponsible motorists. Uninsured motorists insurance is one such attempt. However those drivers without insurance contribute little or nothing to financing this system. This paper presents an alternative mechanism to finance damages by financially irresponsible motorists which these motorists can not evade. The authors propose that premiums for basic limits of uninsured motorists coverage be collected by a small universal motor fuel levy. These state-collected premiums then would be distributed to insurers on the basis of the number of vehicles insured within the jurisdiction. The authors argue that this mechanism is both more equitable and significantly lower in costs for the average motorist than the present mechanism of financing uninsured motorists coverage.
- Subjects
UNINSURED motorist insurance; INSURANCE
- Publication
Journal of Insurance Regulation, 1989, Vol 8, Issue 1, p36
- ISSN
0736-248X
- Publication type
Article