Letter to the Editor: Choice' no-fault insurance bad for consumers

Albany Times Union
Monday, March 12, 2001

Virtually every consumer group in America, including the National Consumer Federation of America, Public Citizen, Ralph Nader and NYPIRG strongly oppose auto ''choice'' no-fault because it's a sham. (''Auto insurance wisdom, '' editorial, Feb. 27).

Here's just one reason why: Even assuming ''choice'' no-fault schemes lower insurance costs, which is highly debatable, they certainly don't lower premiums for consumers. It's the lesson of history that insurance companies turn cost savings into higher profits, not lower rates. Further, to achieve the purported savings cited in your editorial, benefits for consumers would have to be reduced by a Draconian 50 percent or more, according to former Texas insurance commissioner and Federal Insurance Administrator J. Robert Hunter.

Whatever its name, no-fault ''choice'' is an extremely flawed idea and a very bad deal for consumers.

(NOTE: The author of the letter is CJ&D Executive Director Joanne Doroshow.)

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