[Tcoat]

Originally Posted by extrashaky

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!

Originally Posted by extrashaky

No I didn't.

OK not a "Big" deal but a deal. This is the point that people seem to be missing with our "no fault" system. The at "fault" driver's rates DO go up when they have an accident. They don't make up their shortfalls by increasing everybody's rates (although rates do of course increase but so do at fault systems) the higher risk drivers pay the increases. The incentive to not have accidents is exactly the same as an at fault system here.