ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Saturday, April 19, 1997 TAG: 9704210046
SECTION: BUSINESS PAGE: A7 EDITION: METRO
DATELINE: WASHINGTON
SOURCE: ASSOCIATED PRESS
A bipartisan group of senators Friday introduced legislation they say could save motorists hundreds of dollars a year on auto insurance bills by limiting the rights of accident victims to sue.
``This could be the biggest tax cut of this decade,'' said Sen. Daniel Patrick Moynihan, D-N.Y.
Proponents say the measure could save consumers as much as $45 billion a year.
According to estimates, the plan could reduce the average motorist's insurance bill by $213 a year. In New York, which has some of the highest auto-insurance rates in the nation, a motorist would save up to $417 per year.
The bill, sponsored by Sens. Mitch McConnell, R-Ky., Joe Lieberman, D-Conn., Moynihan and others, is virtually identical to legislation introduced last year by former Senate Majority Leader Bob Dole. That bill failed to get through Congress.
The proposal, the so-called ``Auto-Choice Reform Act,'' would give motorists the option of buying cheaper auto insurance that would cover only economic damages, such as medical bills and lost wages. It would eliminate the currently required liability coverage for pain and suffering.
Under the plan, motorists who are hurt in a crash would recover economic damages from their own insurer. Economic damages not covered under the policy of the insured driver could be recovered from the negligent driver.
Drivers would also have the option of retaining customary auto insurance and the right to sue for pain and suffering, but would pay higher rates.
However, some consumer advocates oppose the plan, saying it would deny the traditional right to sue to many drivers and would eliminate pain-and-suffering damage for all but the most affluent drivers who would pay higher rates.
LENGTH: Short : 44 lines KEYWORDS: FOOTBALLby CNB