Car insurance quotes as low as $29?

Several estimates by members of the legal profession are cited to the effect that compulsory compensation insurance, assuring substantial relief to all victims of automobile accidents, regardless of fault, would cost only about $10 or $29 per car per year. Find cheap general auto insurance coverage. Such estimates, so presented, are calculated to make this project attractive to owners of motor vehicles in large cities, whose liability insurance is now costing them from $100 to $300 per year. But there are several “niggers in the wood-pile.”

Suppose that the average cost of compensation insurance per car were only $29, then, to be equitable and tolerable that cost would have to be “merit rated,” which would mean that the farmer, in the back districts, would be charged a premium of something less than $10 on his car, whereas the premium on a car used habitually in a large city, such as New York, would be somewhere around $200; and this premium for compensation insurance would be additional to a premium for liability insurance, which (unless the liability for compensation should be made “exclusive”) all financially responsible motor vehicle owners would still need to carry.

Moreover, an average cost of as low as $29 per car—let alone $10 per car—is a mere possibility, hardly a probability, and far, far away from a certainty. Manifestly members of the legal profession are not reliable estimators of insurance costs. Manifestly, also, the cost of compulsory insurance would depend (among other things) upon the scale of benefits; and if such scale should be made high enough reasonably to satisfy the victims and materially reduce liability litigation, the cost would soar far above any meager $29 per car. It is simply catering to ignorance to lead the public to expect high benefits from any such form of compulsory insurance at a low cost.


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