Richard K. Armey: “Tomorrow the Subcommittee on Finance and Hazardous Materials of the Committee on Commerce will hold a hearing on my…”

“Tomorrow the Subcommittee on Finance and Hazardous Materials of the Committee on Commerce will hold a hearing on my bill, the Auto Choice Reform Act, which will cut auto insurance premiums by 24 percent and save American drivers $193 billion over 5 years. Today we are forced to pay more than is necessary for auto liability insurance in order to be eligible to play the tort lottery, whether we want to or not. Some people see this lottery as a way to hit the jackpot. They exaggerate their real damages in order to sue for huge noneconomic damage awards. This fraud and abuse, as well as the excessive lawsuits, have helped drive up the cost of auto insurance and have led to the undercompensation of seriously injured victims. Auto Choice addresses these problems by giving American drivers a choice in the kind of insurance they can buy. Under Auto Choice they can stay in the tort system or they can opt to collect their actual losses from their own insurance company and forego suits for economic damages. In exchange, they will see lower premiums and better compensation. Americans should be free to buy the auto insurance policy that best fits their needs. Auto Choice gives them this freedom.”