On Tue, 20 Aug 2002, Bryan Caplan wrote: > I suppose they don't pay the higher insurance premiums - probably 80-90% > of the full amount you pay for a traffic offense.
They offer 2 policies: under the first one (cheaper) they pay your ticket if you lose. You pay the fine and submit the receipt; they reimburse. Under the Premium option, they will provide you with a grant of the amount of the ticket the second it is issued, then will pay the ticket if you fight in court and lose. The grant is intended for use in developing one's defense, etc. The premium option is $120/yr, and has no maximum number of tickets that will be eligible for the grant. Sure, most of the cost of the ticket is in the insurance premium, but should still expect adverse selection problems. On the other hand, benefits are only payable if you have a valid driver's licence when you get your ticket; presumably, folks who would run the system into larger losses lose their licences before they can impose too severe a burden.... > > -- > Prof. Bryan Caplan > Department of Economics George Mason University > http://www.bcaplan.com [EMAIL PROTECTED] > > "He wrote a letter, but did not post it because he felt that no one > would have understood what he wanted to say, and besides it was not > necessary that anyone but himself should understand it." > Leo Tolstoy, *The Cossacks* > >
