From Columbia University alumni built in San Francisco
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From Columbia University alumni built in San Francisco

Lena: Hey there, Miles! I was driving to the studio today and heard this radio ad about no-fault insurance saving people money. But that got me thinking—if it's supposedly cheaper, why are so many people complaining about high premiums in no-fault states?
Miles: That's such a great question, Lena. And it highlights one of the biggest paradoxes in auto insurance today. No-fault insurance was actually created in the 1970s with the promise of lowering premiums by reducing lawsuits and streamlining claims.
Lena: Wait, so it was supposed to make insurance cheaper? What happened?
Miles: Exactly—that was the sales pitch! But reality turned out quite differently. According to RAND Corporation research, liability premiums in no-fault states are now about 50% higher than in traditional tort states. The system that was designed to save money is actually costing consumers more.
Lena: That's wild! How did something designed to lower costs end up raising them instead?
Miles: It's fascinating how good intentions can lead to unintended consequences. The no-fault system was meant to be simpler—you get in an accident, your insurance pays your medical bills regardless of who caused it. No lengthy legal battles, no waiting for fault determination.
Lena: But clearly something went wrong along the way...
Miles: Several things, actually. Let's explore how this well-intentioned insurance reform became so expensive and why some states are actually abandoning it altogether.