Their goal was to achieve rapid and full compensation of auto accident claims without litigation. They suggested that we steer away from the American tradition of resolving disputes through litigation, to a system in which the insured insurance company pays the claim. This proposal won little attention until professors Robert Keeton and Jeffrey O'Connell refined it in 1965. They proposed a limited no-fault system, exclusively for minor accidents. Anyone injured in an accident would receive compensation for medical bills, loss wages, regardless of fault. Only those meeting the threshold of $5000 would have access to the tort system.

At first this no-fault system seemed like an efficient way to receive compensation for accidents, and many states jumped on the bandwagon. At its peak, 24 states adopted some form of no-fault. Currently there are 10 mandatory no-fault

Overall, no-fault does not reduce litigation costs. Litigation over property damage for which the vast majority of car accident claims are filed continuos under no-fault, because no-fault systems typically retain the liability system for property claims. Most claims that are filed are against the Insureds Company, because of failure to pay.

No-fault states have the highest average automobile liability insurance premiums. Of the ten states with the highest premiums in 1989, eight were no-fault. Since then, PA, NJ, and CT have repealed their mandatory systems, however, no-fault remains optional in PA and NJ. From 1989-1995 premiums for no-fault states rose nearly 25% greater than in non no-fault states.

Most of my information came from (Consumerwatchdog.com) the rest from the book.

Under the no-fault system, both the innocent and the guilty are compensated with medical, wage loss and other benefits- regardless of whom is at fault. I would say that paying the claims of both parties in more expensive than paying just for the innocent. The no-fault system does not reward good drive

Some common words found in the essay are:
Insureds Company, PA NJ, Jeffrey O'Connell, Auto Insurance, no-fault system, NJ CT, insurance companies, tort system, increasing premiums, regardless fault, insurance company, system no-fault, pa nj, no-fault systems, bad drivers,
Approximate Word count = 741
Approximate Pages = 3 (250 words per page double spaced)