Is Pay As You Pump Insurance Practical?

A few crackpots on the fringe of the media have been running blogs and articles in newspapers about the concept of paying an additional surcharge per gallon of gas that would be placed in a statewide insurance liability pool. The idea is to eliminate uninsured motorists. After all, everyone buys gas, right? With that sort of a system in place, they say, you would only pay for a fair amount of coverage based on how often you drive – you would no longer need to get car insurance quotes and carry a normal policy in the way we do now.

There are any number of issues that can be brought up about this hare-brained scheme. Let’s say you only drive 10 miles a day, do you really put enough money into the pool to cover an accident that costs a total of $100,000? Next, who is going to control this fund? The state governments cannot even provide enough money for basic services at this time, do you really think that legislatures will not dip into a ready pool of cash until it dries up? How long before you are required to carry additional coverage that must be liable first, before the pool can be touched, thus preserving income for insurance companies and access to ready funds for state governments?

The people championing this system are supposed to be educated journalists. At least the latest proponent, Rodger Jones of the Dallas Morning News, admits that insurance companies will fight against this type of legislature. Common sense should be fighting against it as well.

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