Escaping the tort-based auto accident compensation system: The Federal Auto Choice Reform Act of 1997

The Auto Choice Reform Act of 1997 represents the most recent attempt to implement no-fault auto insurance at the national level. The bill's supporters recognize that while people dislike paying (and in the case of low-income motorists, often cannot afford) insurance premiums that have been inflated by tort liability coverage, neither will they tolerate having their tort rights wrested away from them by legislative mandate. Accordingly, the Auto Choice Reform Act would permit drivers in every state to choose either a no-fault policy or a modified version of their pre-existing policy. The plan would remedy the central defects in the current system for compensating victims of auto accidents, leading to more affordable premiums and better service for policyholders. Still, there is reason to fear that the Auto Choice Reform Act will set a dangerous precedent that could lead to further federal intrusions into insurance regulation.