Abstract
Under the Pay-As-You-Drive automobile liability insurance plan, non-commercial vehicle liability insurance premiums would be collected via a gallonage surcharge on gasoline. Additional insurance surcharges would be levied on motorists convicted of moving violations or initiating accidents. (The latter surcharge could be eliminated if the plan were adopted in conjunction with a no-fault plan.) These state collected insurance premiums could be allocated by state auction to insurers willing to perform litigative and liability damage claim adjustment and disbursement functions for vehicles garaged in a specific geographic area. The auctioning procedure would be analogous to the present method of allocating state highway construction funds. By essentially eliminating collection-oriented expenses, Pay-As-You-Drive can offer higher coverage at a lower cost than the present system provides. Furthermore, the plan essentially eliminates uninsured and underinsured motorists.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
