Maine Voices: What if we reorganized auto insurance?

According to the National Highway Traffic Safety Board, estimated 42,915 people died in traffic accidents last year“A 10.5% increase from 38,824 deaths in 2020. This projection is the largest number of deaths since 2005 and the largest annual rate of increase in the history of the mortality analysis reporting system.”

These 42,915 people represent about 74% of the 58,220 Americans. who died in the vietnam war.

there is many causes of car accidentsThis includes drunk driving, drowsiness, speeding, and distracted driving (such as texting while driving). However, one factor that is rarely mentioned is the fact that insurance often covers the cost. even if you make mistakesPremiums may rise, but that’s for the future.

All in all, car insurance involves moving money from someone who didn’t cause an accident to someone who did. Viewed in this way, insurance could be viewed as a case of positive reinforcement, as described in BF Skinner’s 1953 book. “Science and Human Behavior”

Without insurance, the at-fault party involved in an accident would immediately suffer a large loss. In insurance, an increase in premiums can happen well enough, but little immediate financial loss.In economics, such perverse incentives are called moral hazard.

The same analysis applies to other forms of insurance. For example, in a recent Maine Voices column (“Maine Voice: All Maines Need Paid Family and Medical Leave – Not Just Some of Us‘, Oct. 28) debated in favor of paid family and medical leave. Her author Katrina Ray-Saulis writes: You’re making other terrible trade-offs. ”

In other words, if you have a sick family member, you will have to cover the costs associated with missing work for others. (Ray-Saulis doesn’t say that other people will cover the cost. The voting initiative she’s working on in front of voters is called “Workers need time without the employer paying the cost.”) will create a fund to pay the workers for

Is there a way to avoid the adverse effects of insurance? Consider the following: People who need auto insurance pay their premiums on an annual basis, just like they do today. However, the money goes into a fund owned by the principal. If he or she is at fault in the accident, money will be deducted from the fund to cover the costs. If you need more money, borrow money from other such people’s funds.

When you retire, any money left in your own funds (which is compounding interest for the loan above) will be returned to the owner and used for living expenses or other legal purposes. Therefore, people who drive carefully have better retirements than those who have accidents. It is hoped that accidents involving drunken driving, falling asleep, speeding or distracted driving will decrease as each person bears the cost of accidents caused by their own fault.

Reorganizing the insurance structure could lead to fewer highway accidents and better health outcomes. A more general message means taking greater responsibility for the problems you’ve caused instead of shifting that responsibility onto someone else’s shoulders.

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