Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.2 9/18/84; site mb2c.UUCP Path: utzoo!linus!decvax!harpo!whuxlm!whuxl!houxm!mhuxt!mhuxr!ulysses!gamma!epsilon!mb2c!megjpm From: megjpm@mb2c.UUCP (John Macks) Newsgroups: net.legal,net.auto Subject: Re: Uninsured motorism Message-ID: <239@mb2c.UUCP> Date: Tue, 13-Aug-85 22:00:16 EDT Article-I.D.: mb2c.239 Posted: Tue Aug 13 22:00:16 1985 Date-Received: Tue, 20-Aug-85 00:36:27 EDT References: <202@SCIRTP.UUCP> <378@kontron.UUCP> <586@ttidcc.UUCP> <748@lsuc.UUCP> Distribution: net Organization: Michigan Bell, Southfield, MI Lines: 47 Xref: linus net.legal:1718 net.auto:6646 > > > What if you or I were hit by an uninsured driver? > > > We could tally huge medical bills with no means > > > to pay for them. I think you can never confiscate > > > someone's automobile liability insurance because > > > others will often suffer the most. > > > > Which brings up an important point. This can happen to you > > NOW! My attorney has handled many cases where > > innocent people were severely injured by uninsured drivers > > and were unable to collect. ... > > Which suggests that, in jurisdictions where motorists are allowed > not to have insurance (that's most of them in North America, isn't it?), > insurance companies should sell policies that protect you not only > against your own liability but also against that of the uninsured > driver who runs into you. > > In other words, suppose I collide with J, and J is at fault, > and I suffer serious injuries; then J's insurance might have to pay > me, say, $250,000. But if J is uninsured, J merely owes me > that money, and since he can only pay $5,000, I'm out $245,000 > (minus what my particular government chips in), and J declares > bankruptcy or something. > > Under my proposal, my own insurance, although primarily for the > purpose of paying J if I had been at fault, would pay me the $250,000 > in this case. J gets the same treatment as before, because he still > owes $250,000 -- only now he owes it to my insurer, not me. So there > my proposal does not confer any benefit to J, but does to me -- at a > cost of a slightly higher premium. I say slightly higher because most > drivers *are* insured, so the risk of this is small. > > I favor mandatory liability insurance for drivers, but this seems to > be a workable alternative. I've never heard of such policies actually > existing anywhere. Do they? > > Mark Brader In Michigan, all car owners are required by law to maintain liability coverage. In order to get your annual license plate tabs, you must provide proof of insurance. I believe auto insurance is mandatory in many other states. This does not eliminate the problem of uninsured motorists, since they can still obtain proof of insurance by paying the first installment on the policy at the time of license plate renewal, and then simply not pay the remaining insurance payments and thereby let the policy lapse. Thus, insurers still offer uninsured motorist coverage in Michigan, at a very modest additional premium.