West Virginia legislation aims to lower auto insurance premiums

One West Virginia law aims to lower auto insurance.Drivers in West Virginia have the Third-Party Bad Faith Act to thank in part for their low-cost car insurance.

This piece of legislation ensured that the injured, or third, party could not sue the insurance company of the negligent party if the insurer failed to justly settle their claim. Before the law was passed, auto insurance premium costs in West Virginia were affected by the high number of lawsuits by third parties. The state’s insurance commissioner is now responsible for handling these claims.

The banning of third-party law suits occurred because a state report found that the high number of these claims in West Virginia was resulting in increased auto insurance premiums.

After the legislation was passed, Insurance Commissioner Jane Cline told the West Virginia Insurer that "what we are seeing is more availability in products and companies are beginning to address the affordability, in that we have seen significant rate reductions on the part of major writers in this state and, I think, that’s the benefit for consumers, having available and affordable products."

At the end of the first year after the law passed, auto insurance premium costs fell 9.8 percent in the state.ADNFCR-3298-ID-19748747-ADNFCR

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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