The Politics of Automobile Insurance Reform

A most welcome challenge to the conventional wisdom that lawmakers are in bondage to the interest groups that fund their campaigns. -- Alan Rosenthal, Eagleton Institute, Rutgers University Theoretically sophisticated and empirically inventive. It represents a real contribution to the literature on the important point that 'ideas matter.' -- Steven Kelman, Weatherhead Professor of Public Management, John F. Kennedy School of Government, Harvard University

American and Canadian governments deal with rising auto insurance rates in different ways, a difference attribute to variances in political pressure. This title argues two additional factors such as: the importance of politicians' beliefs about the potential success of various solutions and the role of governmental institutions.American state and Canadian provincial governments have dealt with rapidly rising auto insurance rates in different ways over the last two decades, a difference many attribute to variances in political pressure exerted by interest groups such as trial attorneys and insurance companies. Edward L. Lascher, Jr., argues that we must consider two additional factors: the importance of politicians' beliefs about the potential success of various solutions and the role of governmental institutions. Using case studies from both sides of the border, Lascher shows how different explanations of the problem and different political structures affect insurance reform. In his conclusion, Lascher moves beyond auto insurance to draw implications for regulation and policymaking in other areas.