Editorial: Why Gouge The Natives?

West Virginians are waiting for legislators to cut premiums

Charleston Daily Mail, March 4, 2005

West Virginians pay more per car for insurance than people in neighboring states, doubly painful considering this state has almost the lowest per-capita income in the land.

The average annual insurance premium is:

One big reason is that West Virginia allows third-party bad-faith lawsuits. Rather than settle these disputes through the insurance commission, West Virginia allows lawsuit lottery.

Trial lawyers love it, because they usually rake in a third of any award. But it adds to the costs car owners must pay. Most legislatures have chosen not to do that.

West Virginia is also one of the few states that has joint and several liability. Theoretically, a person 1 percent responsible for an accident could end up paying 100 percent of the damages.

For years, insurance companies have sought tort reform only to run up against a wall of trial lawyers and their supporters in the Legislature.

This year, though, Gov, Joe Manchin is behind tort reform. And insurers have promised to roll back premiums by as much as $100 per car.

And that is lowballing it. Further reforms could produce greater savings.

Legislators shouldn't have trouble figuring out what to do here. They either act to preserve profit centers for trial lawyers or they act to lower insurance premiums for their constituents.

Either way, it's gonna show.