Press Releases, News & Notes
September, 1998

U.S. SENATE PUSHES FEDERAL NO-FAULT INSURANCE PLAN

Washington, D.C., September 9, 1998 - America's motorcyclists, as well as consumers in general, should be aware that the U.S. Senate is poised to bypass the standard committee process and bring a nationwide No-Fault Insurance plan to a floor vote before Congress adjourns. 5.2454, the "Auto Choice Act," would essentially force every state to adopt a "no-fault" vehicular insurance plan.

Under this federal no-fault scheme, drivers involved in motor vehicle accidents must file claims against their own insurance companies for their losses, even if they didn't cause the accident The motorcycle always loses the battle between automobile and motorcycle, and 72% of all car vs. bike accidents are the fault ofthe auto driver As policy rates soar, even for those who are not at fault in an accident, bikers and other innocent drivers would be punished while bad drivers benefit.. and reckless drivers get off the hook! Also important to motorcyclists, this federal insurance plan would virtually eliminate compensation for non-economic injuries (pain and suffering), including gross disfigurement, loss of a limb or vision, loss of fertility, or excruciating lifelong pain. ..unless costly catastrophic injury coverage is purchased separately.

No Fault = No Responsibility. While the current tort system isn't perfect, the concept of liability reduces negligent conduct. A 1994 study found that auto fatalities increase 18% under no-fault. A Quebec study found that the introduction of no-fault caused an increase in both the rate ofauto fatalities and accidents, between 10% and 32%. Similarly, a New Zealand study showed increases in fatality rates between 16% and 20% after introducing no-fault.

No-fault is a failed experiment that has been soundly rejected by more than half the states, and no state has enacted no-fault since 1976; while three states-- Connecticut, Georgia and Nevada (as well as the District of Columbia) --have repealed such systems. In Connecticut and Georgia, premiums plummeted the year after no-fault was repealed.

Under our American system of government, any state in the Union is free to enact an identical no-fault system as that proposed by the feds, yet none have done so. Why then, in light of all these concerns, not to mention states' rights. is Congress attempting to force "no-fault" insurance upon the 50 states? Why not call both your U.S. Senators today and ask them why? To reach any member of the Senate, call (202) 224-3121.