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State Representative Tom Hackbarth

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For more information contact: Austin Bleess 651-296-5529

Posted: 2006-01-11 00:00:00
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NEWS COLUMN

YOU’LL SAVE MONEY IF WE DUMP NO-FAULT CAR INSURANCE

By State Rep. Tom Hackbarth,
District 48A

Would you like to save $160 on your auto insurance? Would you support a new law that would allow you to do just that?

Among the many issues that will be discussed when the 2006 legislative session opens March 1, there is one little bill, that if passed, would scrap Minnesota’s “No-Fault” auto insurance system, replacing it with a more traditional “tort” system. It could save you 10 to 20 percent on your auto insurance premiums.

First, here’s a little history. Minnesota’s no-fault insurance system was adopted in the mid-1970s as a measure to compensate drivers for the costs of their medical care if they were injured in an accident, without having to spend the time determining who was at fault in the accident. Great idea? One reason the law was adopted was to prevent minor accidents from entering the court system.

But guess what happened? Since then, court decisions have allowed virtually any accident to end up in a tort lawsuit, defeating the original purpose of the no-fault system. The system no longer does what it was supposed to do for consumers. Insurance rates have increased as a result, and with it, a greater number of uninsured drivers. It’s estimated that as many as 15 percent of all drivers in Minnesota don’t carry the mandatory no-fault coverage.

Minnesotans’ average premium costs have risen steadily over the last decade. As of last year, we ranked 22nd in the nation in premium cost, yet all neighboring states pay far less even though liability insurance costs and repair costs are much the same. There’s no reason why our rates shouldn’t be closer to our neighbor’s rates.

Dropping our no-fault system would likely lead to a dramatic decrease in auto insurance premiums, making auto insurance much more affordable, and perhaps reducing the number of uninsured. This is a good case when undoing a bad law makes both fiscal and common sense.

Rep. Hackbarth is the state representative for House District 48A which includes Elk River, Burns Township, Oak Grove, Bethel and East Bethel

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