2007 House Bill 38 (Require low-mileage premium reductions for auto insurance)

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Introduced by Rep. Jim Wayne on January 2, 2007, to require any rates, rating schedules, or rating manuals for the liability, personal injury protection, and collision coverages of a motor vehicle insurance policy filed with the Office of Insurance to provide a low mileage premium discount if the insured motor vehicle is driven 5,000 miles or less annually.
- Referred to the House Banking and Insurance Committee on January 3, 2007.

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Comments

Introduced by Rep. Jim Wayne on January 2, 2007. New Comment

1) Who does this bill benefit? [by JGault on August 28, 2007]
I would like to know if this bill is actuarially sound. I understand the argument that people who spend less time on the road have fewer days per year that they could be involved in an accident. This might also mean that they are less experienced, or less capable drivers and thus more prone to having an accident on those days they venture out on the road.

Every time we tinker with mandatory insurance coverage or rates, whether it is auto, or health insurance, all the other policy holders get stuck picking up the difference to cover whatever chosen class benefits from the bill. Tell us which constituency this was intended to benefit. Without a compelling reason, let actuaries set policy rates and don’t tinker with the market system.
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