Sought big change in the car Insurance

California is considering a new system of auto insurance that drivers would have to pay royalties on the fuel pump and the costs depend more on how they lead many traditional factors such as type of car, or they use they live.

Some insurance companies and lawyers process hate the idea that it is too easy “out-of-control rising insurance costs and the huge problem of uninsured drivers.

Environmentalists have high hopes that the concept will catch up, here and across the country, as they say, it increases the price of the conduct of its costs, more precisely, which is to discourage the traffic.

State Senator Art Torres of Los Angeles, a Democrat, head of the Senate, insurance, patent rights and corporate capital committee, said he would “pay-at-the-pump” legislation requires a fuel surcharge of 30 cents per gallon, as well as vehicle registration services are booking fees. The basic plan, insurance for all drivers, even if people, their own expensive cars would probably choose to buy additional coverage to private property, which would be authorized under the plan. Addressing uninsured drivers

The proposal by rear-men say, there will be a crisis of auto insurance in California, which has a higher rate of automobile insurance in the nation. As long as 6 million from the state 20 million motorists are not insured, driving illegally because of costs.

The new plan is a book, “auto insurance alarm” (Simon & Schuster Simon & Schuster, 1993), by Andrew Tobias, a financial columnist for Time Magazine. The current system is unfair and terrible terrible waste ” he said in an interview. “This plan would, far from all sales, far from the hotel to all lawyers and not the requirement of uninsured drivers. I think that’s a powerful concept.”

Proponents say that the new concept is also billions of dollars in waste disposal. The California Department of Insurance, said 44 cents of every dollar on insurance premiums for losses actually paid as medical care, lost wages and repairs. According to the proposed plan that will strengthen to 72 cents of every premium dollar, the Division estimates.

The proposal has the support of the National Insurance Commission John Garamendi, estimates, California is it save drivers $ 4 billion per year, the average amount of reduction, the driver of a car going on in auto insurance a third. Although prices vary depending on a variety of factors, the average driver 30 years without injury now pay about $ 556 per year for basic coverage. Under the plan, as a driver to pay $ 311, the insurance division said. Support groups of consumers

Some consumer groups and environmental groups have also approved the plan, praised its simplicity and its potential to lead the roads and reducing air pollution through economic incentives for people to reduce their driving time and kraftstoffsparende passage to vehicles.

But the resistance against the plan, an alliance between insurance companies and trial lawyers. They characterized the idea unfair, unrealistic and full of questions unanswered.

The pay-at-the-pump is not a new idea. Maryland that such a plan in the year 1972. Legislation has been at the meeting of 1975 in California, but failed. Unlike the current proposal that we have not for insurance protection whatever the pilot who was a fault in an accident.

Under the “no fault” Determination of the new plan, insurance, a ban on use of pain and suffering, to 100 per cent coverage of medical expenses up to $ 25000 for lost wages and $ 5000 on the coverage rate of collision. An additional coverage could be purchased in private.

Even if other states, including New York, currently have forms of “no-fault” insurance, they allow complaints for damages in a certain severity of damage or if more than a certain limit. In Connecticut, which aa no-fault state, actions are allowed when the damage exceeds $ 400. Reserved on the proposal

New Jersey also has the highest auto insurance in the nation. But most experts say a pay-at-the-pump plan, it would be impractical, if not all neighbouring countries also had such programs, because it would be too easy for motorists driving in New York, Pennsylvania and Delaware or buy fuel without additional fees.

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