No Fault Auto Insurance Essay

No-Fault Auto Insurance Is Faulty! Hidden truths are the exciting part of contracts as they throw twists and turns into the deal, sometimes for better but also sometimes for worse. Just like those “$8/month for the first 6 months” gym memberships have hidden terms and conditions, car insurance is no different and it is wise to read the fine print to ensure understanding of what is included. However, with car insurance, sometimes the fine print is not sufficient as certain parts are emphasized whereas others are either not mentioned or not mentioned until it is necessary to make a claim. Regardless of the contracts involved, there are two main systems of insurance in use: tort and no-fault. Tort liability is the traditional system of hiring a lawyer and taking care of matters in front of a court. No-fault insurance was
When drivers have adequate insurance coverage, they have no fear to drive dangerously since they know they will not pay penny-for-penny out of pocket in the event of a collision. If drivers did not have insurance coverage, they would categorize themselves in a different category of risk aversion because of the likelihood that an accident will make a large impact on an individual’s personal bank account. This translates into carelessness on the roads and increased danger. An example of another similar moral hazard problem is related to the Gardasil vaccination for HPV that is administered to sexually-active females in the years of their life that they are deemed to be at the highest risk of infection. This vaccination delivers a false sense of security to adolescent females and increased infection rates of other STDs have now been reported as linked to those who were vaccinated (Caplan & Field, 2008).
The Evolution of No-Fault Auto Insurance in the 20th