Obamacare’s Potential to Trim Tempe’s Auto Insurance Premiums
The Tempe collision repair and auto insurance communities respectively have become acutely aware of a potential unintended consequence of the Affordable Care Act, more casually known as “Obamacare”: a possible slimming-down of many auto insurance premiums.
Recently released conclusions from Chicago law firm for medical malfeasance and nonprofit Rand Corp.’s study of Obamacare’s far-reaching impact suggest that auto insurance and worker’s compensation coverage costs could decrease at the same time that physicians and healthcare providers’ malpractice insurance plans become more costly.
WHERE MEDICAL NEEDS MEET AUTO-INSURANCE COVERAGE
Don’t look quite so surprised – healthcare costs and collision coverage intersect more meaningful than many policyholders would ordinarily think about.
As recent posts on Insurance 4 MotorTrade explain in detail, auto insurance policies often cover more than the costs associated with Tempe drivers’ collision repair damages coming out of an accident. More often than not, driver coverage also foots the bill for medical costs in the event of injuries, including even third parties who are indirectly harmed during the event. The two coverage types differ in that, while healthcare insurance providers usually try to talk medical-care costs down as low as possible, auto insurance companies settle for “list price” costs.
Under Obamacare, this stands to become a much-less-frequent concern. With more Americans carrying healthcare insurance, fewer Americans will theoretically rely upon their auto insurance providers to see to their medical needs after an accident, consequently reducing the total expenses that auto insurance providers could potentially have to cover for each policyholder.
The potential for decreased premiums could vary from one state to the next. Much of that could depend upon a given state’s scale of Obamacare participation. The study cites Florida, Colorado and Oregon as just a few states whose average auto insurance premiums could fall between 3% and 5% as soon as 2016. Of course, the more costly the policy, the greater the individual family’s potential savings.
There could yet be more to the story, depending on how Obamacare’s effects play out.
There’s an outside chance that no-fault auto insurance could slowly become obsolete. In a number of states, this particular required, expensive coverage guarantees compensation in the event of particularly severe injuries. Theoretically, what would be the point of requiring such expensive auto insurance if Obamacare succeeds in guaranteeing more Americans access to adequate medical care?
Of course, this all remains theoretical. Obamacare has gained steam and begun reaching the law’s enrollment aspirations. However, much depends on the numbers and vetting research guaranteeing that Obamacare’s success has already made the above-mentioned insurance conventions obsolete.
Time will tell, but in the meantime, this can’t be a benefit that even President Obama himself saw coming.