Quote:
Originally Posted by jsimon7777
Just because no-fault makes everything easier, reduces suing, and costs everybody less doesn't mean Americans will give up their ideals.
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Most states have gotten rid of no fault insurance because it was a nightmare that made everything
more difficult,
increased suing and cost everybody
more. No fault will always fail because it ignores the principles of economics.
Florida is still a no fault state for personal injury, and it illustrates the problems perfectly. We have some of the highest insurance premiums in the country and a proliferation of personal injury lawsuits because of the no fault personal injury scam.
You have to carry a minimum amount of coverage for you and the people in your own vehicle.
In an at fault state, causing an accident that results in a claim causes your rates to go up in order to apply the insurer's cost where it belongs, with the riskier driver.
But it's not fair to raise your rates when it was someone else's fault, so state law says the insurance company can't hike your rates for a no fault claim.
What happens instead is that since the insurance company can't hike your rates and can't hike the other guy's rates if he's with another insurer, they just raise everybody's rates across the entire state to remain profitable.
Since drivers in general know their own rates won't go up because of an accident but their liability is still covered to some extent, there is less apparent incentive to drive carefully to avoid financial ruin. They have less skin in the game. People drive like maniacs down here. Why not? If they hurt someone, it's no fault baby!
Accident rates statewide go up as a result. That causes more claims. That causes rates to rise even more.
Since the rates are higher, people reduce their coverage to the minimums to actually be able to afford their insurance. For my four cars, carrying the coverage level and deductibles I had in Texas was going to cost me more than $4000 per year year, as opposed to around $1600 per year there.
When drivers here have a no fault accident after reducing their coverage to an affordable level, the insurance isn't sufficient to cover their own or their passengers' injuries. That's the point where the lawyers get involved.
First, passengers in the car that didn't cause the accident sue
that driver and his insurer, because that's the insurer from whom they have to recover first.
When that tap runs dry, the passengers sue the other driver and his insurance, even though that insurer isn't actually liable for those claims. They're not supposed to, but they do, because most insurers will squeeze out some settlement money to stay out of court.
Then the driver that wasn't at fault sues the other driver's insurance and the other driver himself. That's a legitimate suit, since his own coverage ran out but there are still medical bills to be paid.
Meanwhile the driver who caused the accident lawyers up, and
he sues the driver
who didn't cause the accident, trying to claim comparative negligence on the other guy's part contributed to the accident. In other words, I caused the accident, but it wouldn't have happened if you weren't there for me to hit, so it's your fault. This actually works in many cases, because the insurers will settle rather than go to court and risk the money on a confused jury or judge.
And all these lawsuits and claims cost the insurance companies even more money, which they pass on to all their customers all across the state, resulting in some of the highest, most ridiculous rates in the country.
Not too long ago there was an idiotic story all over the news that illustrated why no fault is bullshit. A bunch of 14 to 16 year old teenagers stole a couple of cars and took them out on Highway 19, where they played tag with a cop. This is a "thing" among young gang bangers. What they do is one takes off at a high rate of speed where they know there's a cop, with the other one hanging back. When the cop gives chase, the other car races up from behind and tries to get the cop to chase him instead. Then the two cars take turns playing tag to make an idiot of the cop. When it gets too hot, they crash the car in a neighborhood and bail out on foot. If they get caught, it's no big deal because they're juveniles.
But this time one of these kids playing chicken ran a red light and smashed a guy who did absolutely nothing wrong.
The car thief had three other kids in the car with him, all of whom ended up in the hospital. Since that kid didn't even have a driver's license, much less personal injury insurance, those kids lawyered up and sued not only the insurer of the stolen car,
but also the victim they hit. Everybody involved got sued except the piece of shit who caused the accident in the first place.
The victim's insurance company paid off the kids. I think they got $30K each if I remember correctly.
And now I'm paying for those fuckers with my higher rates.
Every year or two one house of the Florida legislature passes a bill to get rid of no fault. Every time the goddamned trial lawyers lobby the shit out of the other house or the governor to kill it. The insurers and consumers want it gone, but no fault supports an entire industry of ambulance chasers here in Florida who donate a lot of money to political campaigns. They pull out all the stops to keep it.