Source: Rand Corporation
No-Fault Automobile Insurance's Fall from Popularity Caused by Increased Medical Costs
No-fault automobile insurance, once seen as a way to limit court costs and lower premiums, has declined in popularity among both insurers and consumers because it largely has failed to accomplish either goal, according to a new study issued today by the RAND Corporation.
While no-fault insurance was intended to lower the cost of compensating people involved in automobile accidents by taking most cases out of the court system, it actually increased costs because medical claims rose sharply instead, according to the study.
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