What If Auto Insurance Was Restructured?

 

We don't give the negative consequences of the burden-shifting that typical insurance is built upon enough thought.

A 10.5% rise from the 38,824 fatalities in 2020, the National Highway Traffic Safety Commission estimates that 42,915 individuals perished in motor vehicle traffic crashes last year. The forecast represents both the highest annual percentage increase in the history of the Fatality Analysis Reporting System and the highest number of fatalities since 2005.

These 42,915 individuals make up around 74% of the 58,220 Americans who lost their lives during the Vietnam War.

Car accidents can be caused by a variety of factors, such as distracted driving, drunk driving, and being sleepy while driving (e.g., texting while driving). One point that is rarely brought up, though, is the reality that insurance frequently covers your expenses even if you are at fault. Your premiums will probably increase in the future, nevertheless.

What if auto insurance was restructured?

Car accidents can be caused by a variety of factors, such as distracted driving, drunk driving, and being sleepy while driving (e.g., texting while driving). One point that is rarely brought up, though, is the reality that insurance frequently covers your expenses even if you are at fault. Your premiums will probably increase in the future, nevertheless.

An at-fault party in an accident would suffer severe losses right away without insurance. There aren't many immediate cash losses when you have insurance, but your premiums could go up. Moral hazards are the term used in economics to describe such skewed incentives.

Other types of insurance are subject to the same scrutiny. For instance, the case for paid family and medical leave was stated in a recent Maine Voices essay ("Maine Voices: All Mainers Need Paid Family and Medical Leave - Not Just Some of Us," Oct. 28). No matter who we are or what we do for a career, we ought to be allowed to take care of our loved ones when a crisis arises without jeopardising our employment or housing, according to the author Katrina Ray-Saulis.

To put it another way, if a person has a sick family member, others should foot the bill for time off work. (Ray-Saulis doesn't mention that other people will foot the bill. The ballot measure, according to the candidate, "would create a fund to compensate workers for the time they need - without companies having to incur the cost."

What if auto insurance was restructured?

Is it possible to avoid the negative consequences of insurance? Think about the following. A person who requires auto insurance pays yearly premiums, just like it does now. However, such cash is deposited into a fund that belongs to the concerned party. if the person is accountable for an accident.

At retirement, the remaining funds in one's account are returned to the owner to be used for living costs or for any other permissible use. These funds have been accruing compound interest as a result of the loans indicated above. Thus, conscientious drivers enjoy more comfortable retirements than those who have been involved in collisions. We should anticipate fewer accidents involving intoxicated driving, drowsy driving, speeding, or distracted driving because each person pays for their own at-fault accidents.

Fewer traffic accidents and improved health are only two potential outcomes of reorganising the way insurance is organised. The larger overarching lesson is that people should take more ownership of the issues they create rather than placing blame on others.

My dear mother-in-law experienced a medical emergency in the spring and spent many days in the hospital.

During those trying few weeks, we all gave it our best effort. However, I neglected myself, responded to emails late, and was unable to give my mother the time and care she required.

I was ultimately struck by two things: We were fortunate to have flexible work, and this shouldn't be the case. No one, not at all.

Regardless of who we are or what we do for a living, we should be able to care for our loved ones when a crisis arises without jeopardising our house or employment or having to make other horrible sacrifices. Most people, however, are not given that choice.

Workers must be able to pay their bills while on family and medical leave for it to be effective. Additionally, it must apply to all of Maine's workers, not just those who are fortunate enough to have the correct occupations.

In order to build a comprehensive paid leave scheme, a state commission was established by the Maine Legislature last year in recognition of this. Later this year, the committee will submit recommendations to the present legislature, and the legislature may act in the ensuing session to enact legislation establishing a paid family and medical leave programme that is offered statewide.

The need for comprehensive paid family and medical leave in Maine is too critical to not plan for all possible outcomes, but we don't know what will happen in November.

In order to pass a Paid Family and Medical Leave Act in Maine, the Maine People's Alliance and the Maine Women's Lobby have joined forces on a ballot question. The idea would establish a fund to pay employees for the time they require without employers bearing the cost, and if necessary, it would go to a vote in 2023. Additionally, it would offer paid leave to all employees, including those who are self-employed and employed by extremely tiny enterprises.

We need a backup plan, so I've gone out gathering signatures for the ballot initiative. Along with hundreds of other Maine voters who are strongly in favour of paid family leave, I will be out and about voting on Election Day.