Montana Lawmakers Approve 'No Pay, No Play' Auto Insurance Bill
If the governor signs the bill into law, it would limit the types of damages that uninsured motorists could recover following an accident.
(EMAILWIRE.COM, April 04, 2011 ) Billings, MT -- Both houses of the legislature have made Montana the latest in a handful of states to approve “no pay, no play” bills that aim to reduce the recovery rights of motorists who drive without proper insurance coverage.
“No pay, no play” provisions bar uninsured drivers from successfully suing for non-economic damages following an accident. While these motorists can still reclaim expenses for medical bills and property damage repairs, under “no pay, no play” they cannot collect on grounds such as physical and mental suffering, emotional distress, humiliation and injury to reputation.
According to the Property Casualty Insurers Association of America, variations on the law already have been adopted in California, Iowa, Louisiana, Michigan, New Jersey, North Dakota and Oregon.
Similar legislation is currently circulating through the state legislatures of Minnesota, Oklahoma and Tennessee.
Supporters of the laws say that uninsured motorists who scoff at state insurance laws should not be granted access to the same recovery rights as those who do purchase coverage. In addition, supporters also say the laws help reduce the burden on insurers by limiting the occurrence of large pain-and-suffering awards and that this, in turn, helps keep prices somewhat lower.
Opponents of the law contend that uninsured drivers do not choose to go without coverage but instead go uninsured as a result of economic strains that may not be totally within their control.
In order to try to quantify the “no pay, no play” legislation’s impact on Montanans’ access to more inexpensive auto insurance prices, lawmakers tacked on to the bill a section requiring insurers in the state to report to the government on its impact on premium rates after its first year. At a transportation committee hearing, some members of the industry expressed doubts that such an effect could be quantified, but the language was ultimately retained.
Source: http://data.opi.mt.gov/bills/2011/billhtml/SB0111.htm
To learn more about this and other car insurance issues, readers can go to http://www.onlineautoinsurance.com/affordable/ where visitors will find informative resource pages as well as a quote-comparison generator that can help consumers track down the best prices for coverage.
“No pay, no play” provisions bar uninsured drivers from successfully suing for non-economic damages following an accident. While these motorists can still reclaim expenses for medical bills and property damage repairs, under “no pay, no play” they cannot collect on grounds such as physical and mental suffering, emotional distress, humiliation and injury to reputation.
According to the Property Casualty Insurers Association of America, variations on the law already have been adopted in California, Iowa, Louisiana, Michigan, New Jersey, North Dakota and Oregon.
Similar legislation is currently circulating through the state legislatures of Minnesota, Oklahoma and Tennessee.
Supporters of the laws say that uninsured motorists who scoff at state insurance laws should not be granted access to the same recovery rights as those who do purchase coverage. In addition, supporters also say the laws help reduce the burden on insurers by limiting the occurrence of large pain-and-suffering awards and that this, in turn, helps keep prices somewhat lower.
Opponents of the law contend that uninsured drivers do not choose to go without coverage but instead go uninsured as a result of economic strains that may not be totally within their control.
In order to try to quantify the “no pay, no play” legislation’s impact on Montanans’ access to more inexpensive auto insurance prices, lawmakers tacked on to the bill a section requiring insurers in the state to report to the government on its impact on premium rates after its first year. At a transportation committee hearing, some members of the industry expressed doubts that such an effect could be quantified, but the language was ultimately retained.
Source: http://data.opi.mt.gov/bills/2011/billhtml/SB0111.htm
To learn more about this and other car insurance issues, readers can go to http://www.onlineautoinsurance.com/affordable/ where visitors will find informative resource pages as well as a quote-comparison generator that can help consumers track down the best prices for coverage.
Contact Information:
Online Auto Insurance, LLC
Benjamin Zitney
Tel: 909-784-2475
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
Online Auto Insurance, LLC
Benjamin Zitney
Tel: 909-784-2475
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
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