Posted on 01/18/2018 6:04:10 AM PST by SandRat
PHOENIX — Rebuffing claims it will harm some low-income individuals, a Senate panel agreed Tuesday to increase the amount of liability insurance that motorists must purchase to drive on Arizona roads.
The 6-1 vote by members of the Senate Committee on Transportation and Technology came over the objections of Sen. David Farnsworth, R-Mesa, who said the more extensive coverage will increase costs.
"There are a lot of folks that live paycheck to paycheck,'' he said. "There are people out there right now that are faced with either a permanent or temporary situation where they have to choose between paying the electric bill or paying their mandatory insurance.''
The result of SB 1075, Farnsworth said, would be that more people would simply choose to flout the legal requirement to have liability insurance. And that, he said, would mean more motorists on state roads who have no insurance at all to compensate those they kill, injure or whose property they damage.
But Sen. Kate Brophy McGee, R-Phoenix, said it is precisely those at the bottom of the income scale her measure is designed to help. She said these are the people with the least amount of personal resources to call on when they are injured or their car is totaled by someone else who does not have sufficient insurance to cover the damages they have caused.
Wednesday's vote in no way assures the measure will become law. Similar legislation was approved by the full Senate last year, only to be held up with Rep. David Livingston, R-Peoria, refused to give it a hearing in the House Banking and Insurance Committee which he chairs.
Current law requires motorists to carry so-called 15/30/10 liability insurance: $15,000 to cover injuries to any one person in an accident, $30,000 for all injuries from the same mishap, and $10,000 for property damage, normally what happens to the other motorist's vehicle.
Brophy McGee said those limits were enacted in 1972. She said there was a presumption that they would be adjusted to keep pace with the cost of medical care and even the increasing price of vehicles.
That, however, has not happened, with the insurance industry in opposition amid concerns that the higher premiums will equal fewer people buying coverage.
Her measure would boost the minimum to $25,000 for injuries to one person, $50,000 for all injuries, and $25,000 for property damage.
David Childers who lobbies for the Property and Casualty Insurance Association of America, argued there's no reason to believe the higher limits are necessary. He cited figures showing that the average liability claim for injuries is about $13,700; for property damage, Childers said the figure is in the $3,000 to $4,000 range.
But attorney Geoff Trachtenberg told lawmakers that figure is misleading.
He said it represents the amounts for which a claim was settled. And, by definition, if someone has only $15,000 worth of insurance, the claim will settle within those limits.
Brophy McGee said actual figures gathered by the state Department of Transportation put the actual losses in a motor vehicle accident resulting in death in excess of $1.5 million. For other injuries, she said, the figure approaches $93,000.
And Brophy McGee said the typical property damage done exceeds $11,500 — all more than what motorists need to carry.
Trachtenberg acknowledged the cost of increasing liability coverage to the new limits should be in the range of about $91 a year for motorists who now buy the minimum. But he said lawmakers should consider the trade-offs.
For example, he said, if at-fault motorists have more insurance, that will enable the health insurance companies of those they injure to recoup some of their costs from the at-fault motorist — or at least that person's insurer. That includes the Arizona Health Care Cost Containment System which provides health coverage for those earning up to 138 percent of the federal poverty level, about $28,700 for a family of three.
And Trachtenberg said if people have more insurance, that should lower the premiums for underinsured motorist coverage. That is optional insurance that motorists can buy to protect themselves if they are in an accident with someone whose coverage does not cover their full medical costs.
The measure now goes to the full Senate.
Does AZ have no-fault auto?
If there is a problem with liability insurance affordability, the solution is simple. Don’t drive
If you have an accident the damaged party insurance company will pin you to the wall until the blood is extracted that makes them whole.
no sweat, just pass out vouchers for insurance along with cell phones, food stamps, tax credits, free education, and welfare. they can be given out when people register to vote democrat. /s
A few years ago, I had some correspondence with a state Senator in Michigan about auto insurance reform.
I called it the “I don’t care about your personal problems auto insurance reform act.”
My proposal entailed eliminating the unlimited funds catastrophic care provision in Michigan for people who’s injuries outweighed their coverage. The other 49 states cap it at $250,000 after which Medicaid or something kicks in. This coverage adds $200 or so per year per car.
Then, I wanted 5-10 year jail sentences for driving without insurance. One or two people get publicly jailed for this, people will either get insurance, take the bus or walk.
Of course, it got nowhere. He readily admitted in writing that his fellow legislators simply didn’t care.
The current amounts in AZ are paltry compared to what most states require.
Just another sob story about how it hurts the poor. They can park their old chokin’, smokin’, oil burners and walk or ride the bus.
We are a nation of equal opportunity, not equal outcome. Nobody has the right to endanger others without the means to at least in part compensate for that.
Let me repeat what you said for emphasis:
“Of course, it got nowhere. He readily admitted in writing that his fellow legislators simply didn’t care.”
Nope, they don’t care. We the sheeple don’t pay well enough for them to care. Being elected is similar to being married. In both cases someone quits caring or trying to please or keep up at least appearances.
Geez, my father made me buy 100/300,000 back in 1976.
Quite the contrary. They do care, they care about the Money they get slid by the Bar Association.
In Michigan the gibmedat Lottery is for one to walk out into the road and get hit by a car. If they survive they are set for life. Talk to any Big City Claims Adjuster. The stories they will tell you are amazing.
Insurance in IL keeps going up and it’s due in large part to the freakin idiots out there with no insurance. I’ve been involved in an accident with a Mexican woman who I doubt even had a license but she had a cell phone which she was tapping on when she slammed into my car.
The company states that per IL law they had to raise rates due to all the costs to cover accidents such as mine.
I live in N Nevada.
MY vehicle insurance is $100,000/300,000 bodily injury
$100,000 Property damage
$25,000 Medical payments
MY premiums have gone up substantially since the Nevada Legislature voted to allow illegals to have driver’s licenses in 2015. My Uninsured motorist coverage premium has gone from 27% of my total premium to 48% of my premium.
Also have a separate policy on my 4 horse trailer. Collision & Comprehensive costs me about $78 annually. WHY? Because if anything happens to the trailer, I cannot just go right back out & buy another one.
This one has custom hay rack (12+ X 6+) on the roof, a 360 degree winch for lifting bales of hay or bags of cubes/pellets to the roof & multiple inside & outside lights for loading/unloading/ or saddling in the dark for long distance horse endurance events where the 100 mile events often started in the dark. Interior of tack room has extra hooks & hangers & a spin-out rack for 3 saddles.
This is meaningless to many people. A AAA report several years ago said 10% of the drivers in the DC area didn’t carry insurance, and nearly as many didn’t even have a valid license.
Does AZ have no-fault?
I call it the "Paulie Insurance Reform Act"....
"Business bad? F--- you, pay me. Oh, you had a fire? F--- you, pay me. Place got hit by lightning, huh? F--- you, pay me."
red U.S. Supreme Court says No License Necessary To Drive Automobile On Public Highways/Streets
In Tennessee, my policy includes an uninsured motorist clause. I get paid for the damages.
The culprit with no insurance gets sued by Allstate and a lien is filed on every asset and potential asset. Their life becomes absolute misery until the due amount is squeezed out
I know this because the woman that hit my wife called and complained bitterly to call off the dogs. It was too late. She failed to pay the judgement when she had the chance
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