COMPULSORY INSURANCE COMPARED WITH FINANCIAL RESPONSIBILITY LAWS

The article discusses the difference between a security type financial responsibility law and a compulsory insurance law. Both laws are attempts to deal with the consequences of motor vehicle accidents. The financial responsibility law, though it does not require automobile insurance coverage, has the effect of increasing the number of cars that are insured. The author uses the example of New York State, for the security type of financial responsibility law. In New York State 94% of the cars are insured. The vehicles carry liability insurance for both bodily injury and property damage. Massachusetts is used as the example for compulsory insurance. In Massachusetts, though it is mandatory for cars to be insured, cars carry only a limited coverage; in fact they may not be covered for many of the instances in which the New York drivers are covered.

Language

  • English

Media Info

  • Pagination: p. 275-283
  • Serial:
    • Traffic Quarterly
    • Volume: 6
    • Issue Number: 3
    • Publisher: Eno Transportation Foundation
    • ISSN: 0041-0713

Subject/Index Terms

Filing Info

  • Accession Number: 00815117
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Aug 12 2001 12:00AM