As can therefore be seen, the auto-choice reform described here accomplishes two principal changes. First, pain and suffering premiums are unbundled from economic damage premiums, for those who wish to do so. Second, insurance is primarily shifted to a first party basis, particularly with respect to the recovery of pain and suffering damages. Both TM and PIP systems seek to largely preserve state negligence laws to a lesser or greater extent. TM insureds recover economic damages above their TM coverage from negligent drivers, and recover pain and suffering damages from their own insurance carrier up to the limits of their own TM policy. PIP insureds recover against their own insurance carrier for injuries above their health insurance or sick leave, irrespective of fault, but can still sue or be sued under state negligence laws for all economic damages negligently inflicted in excess of such insurance.

      A noteworthy feature of auto-choice is its improvement of the auto insurance market without violating the federalist principle of governance. Auto-choice unbundles insurance for economic damages and losses for pain and suffering while preserving substantive state law for those wishing to retain it. Moreover, states are not required to participate in the auto-choice plan. Withdrawal from the auto-choice system simply requires a vote by the state legislature.