Why Not a Public Option for Automobile Insurance?
Printer-friendly version Why are the Administration and Congressional leaders so intent on having the federal government compete with private health insurers — but not with State Farm, Allstate, and other companies that write car insurance? Why not a new Fedicrash option? Only the government, we are told, can keep the corporations honest, and prod them to develop innovative products. Why would this apply only to health insurance? Lots of people are having trouble paying for their car insurance. Especially if they have a teenage son or a little blemish like a DUI on their driving record. Those wicked companies jack up their premiums ruthlessly, instead of spreading the risk more “fairly” over drivers who are female, more mature, or just plan luckier. This drives high-risk people out of the insurance market. Despite the mandatory coverage laws, some become scofflaws who let their coverage lapse, and the rest of us have to help pay for their accidents. Some do keep their insurance, but t
