A COMPARISON OF COSTS INCURRED IN NON-INJURY AUTOMOBILE ACCIDENTS UNDER TORT LIABILITY AND NO-FAULT REPARATION SYSTEMS
The traditional auto accident reparation system, known as Tort, is being challenged for being expensive, slow, inequitable and inviting exaggerated claims. The search for a better system for conpensating victims of automobile accidents had led to studies of no-fault legislation by many government agencies. Compensation under the new reparation system would be made to all victims of automobile accidents from their own insurance companies. This study employs actual rather than estimated data in an attempt to establish the cost of non injury accidents under a no-fault system. In this study it was necessary to examine the costs that an innocent victim pays as compared to what a guilty person pays, under each of the two different reparation systems. An analysis of the responses indicates that under No-fault, ninety-five percent of persons involved in automobile accidents were not able to recover more than sixty five per cent of their monetary losses, under the Tort liability system ninety per cent of the innocent parties recovered approximately ninety percent of their losses. The study shows that the innocent party to an automobile accident will have out of pocket costs significantly greater under the no-fault system than under Tort. Under no-fault, damage to a person's vehicle becomes his own responsibility and he can collect for this damage from his own insurance company if he carries physical damage insurance covering the vehicle. The acceptance by all automobile accident parties to the insure yourself philosophy regarding property damage is justified on the grounds that: in most accidents it is difficult to determine who is actually at fault, the cost of attempting to recover the monetary losses is uneconomical and it is a socially acceptable concept that all victims of an accident should recover their proportional share of loss from their own insurance company.
- Abstract from DISSERTION ABSTRACTS INTERNATIONAL (Section A), V. 33, no. 4, October 1972, pp 1268-1269
University of Southern California, Los AngelesSchool of Policy, Planning and Development
Los Angeles, CA United States 90089-0626
- Tenney, L I
- Publication Date: 1972
- Pagination: 267 p.
- TRT Terms: Costs; Crashes; Injuries; Insurance; Loss and damage; No fault insurance; Property
- Uncontrolled Terms: Property damage; Recovery
- Subject Areas: Finance; Highways; Law; Safety and Human Factors;
- Accession Number: 00262117
- Record Type: Publication
- Source Agency: National Safety Council Safety Research Info Serv
- Files: TRIS
- Created Date: Nov 12 1974 12:00AM