Will People Drive More Safely When Their Auto Insurance Pays The Claim

Post Date March 18, 2012 –  The theory legal liability for his or her actions induces a driver to be more careful is the foundation of the defenders of tort law and how it affects the auto insurance system. Trail Lawyers whom are the chief defenders of the present tort system also argue that every car owners should carry an adequate amount of auto insurance to protect at fault accident victims from their negligence. From a social viewpoint this is proper, but if all auto insurance carried the burden of all the liability, a driver would not pay for his or her negligence behind the wheel. In many states, an auto accident victim or claimant may sue the car insurance company directly so the driver whom is at fault completely escapes even the remote possibility of financial loss for his or her acts. From the victims point of view, the source of compensation is unimportant. It could come from the proceeds of car insurance policy or from the at fault drivers assets.  A recent study showed that only 3% of the drivers held liable in at fault accidents seldom pay any part of the accident costs from their own pocket.  However, up to 18% are liable for damages they are unable to pay for.  Still 80% of the claims are defrayed by the car insurance company. In the U.S., an at fault driver can collect no compensation other than minimal amounts for bodily injury.   Critics of  our car insurance system argue that a life time of lost earnings or poverty producing medical costs are too great a price to pay for a moment of negligence.


Michael E. Dortch
President &  Managing Agent
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602