Pure no-fault auto insurance has been touted as a back door around litigation costs that insurance automobile insurance rates. The problem with no-fault car insurance is that – ironically given the business interests that support it – is that it is pure socialism. Good drivers are required to pay for bad drivers and no one is required to take responsibility for causing harm to another person.
But the biggest problem is that people who suffer catastrophic injuries as the result of a car accident are all treated the same, whether their recklessness caused their own injuries or they were harmed through no fault of their own. How do we reconcile this with the American way?
In Maryland, providing limited no-fault insurance while (largely) allowing the historical tort system to work has been an effective system.