The Consumer Choice Center has published a new policy primer, Fixing What’s Broken: Practical Consumer-Friendly Insurance Reforms to Save Money, advocating for reforms aimed at reducing costs and increasing options in auto insurance for American drivers. The proposed “auto choice” system would allow consumers to choose between tort and no-fault insurance models, aiming to reduce litigation expenses, foster competition, and lower premiums.

“The legal nightmare that comes with every fender bender or more serious auto injury is known to every American, as they’re reminded by the slew of injury lawyer billboards on the interstate.” said Yaël Ossowski, Deputy Director at the Consumer Choice Center.

Previous efforts to pass “auto choice” legislation have often stalled due to opposition from third-party litigation funders and law firms benefiting from high litigation costs. The primer argues that excessive litigation and the influence of third-party litigation funding (TPLF) contribute to high insurance costs. Reforming these practices, along with implementing tort reform, is presented as a solution to make insurance more affordable.

Read the full text here