[Vision2020] Inter-insurance rates (was: ... UI)

[Kenneth Marcy]

A: Because it messes up the order in which people normally read text.
Q: Why is top-posting such a bad thing?
A: Top-posting.
Q: What is the most annoying thing in e-mail?

> >> On Oct 7, 2009, at 2:46 PM, Craine Kit wrote:
> >> Another cost of the lack of a realistic payment system for health
> >> care involves car insurance. I drive a 20 year old Honda. Most of
> >> my insurance premium is devoted to covering medical costs, just in
> >> case I am in an accident. A good chunk of that covers me and my
> >> passengers if the other driver is at-fault and un- or under insured.
> >
> > On Oct 7, 2009, at 3:05 PM, Wayne Price wrote:
> > Your comment raises an interesting question. IF medical/health
> > insurance is going to be required for everyone in the US, does that
> > mean that car insurance will go down?
> >
> On Wednesday 07 October 2009 15:47:01 Craine Kit wrote:
> I should think (hope?) so. Under our current system, one pays to cover
> medical bills related to accidental injuries as part of auto and
> property liability insurance. If those bills are included as a matter
> of general health coverage, then the cost of the liability insurance
> should fall. The number lawsuits should also decrease because people
> would not have to go to court to determine who pays the doctor.

This does make some sort of theoretical sense in an economy with perfect 
information and perfect competition. However, that's not our economy. Just as 
gasoline prices fall a whole lot slower than they rise up for any excuse, so 
will auto insurance rates be slow to fall under competitive pressure as a 
result of intra- and inter-company competition. Where competition among auto 
insurers is low, and where intra-company state regulation is weakest, expect 
the rates to adjust themselves slowest of all.

The good news to note is that Idaho has some of the lowest rates on automobile 
insurance of anywhere in the nation. Even though these rates may improve, they 
likely would be worse if one lived elsewhere.


Ken