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13. The RAND study estimates the effect of auto-choice based on laws in effect as of 1988. Laws in some states have changed since 1988, potentially affecting the savings estimated by Abrahamse and Carroll. Allan Abrahamse and Stephen Carroll, The Effects of a Choice Auto Insurance Plan on Insurance Costs (Santa Monica, CA: RAND Institute for Civil Justice, 1995), 26-7.
14. The 28.6 percent savings figure assumes 100 percent of drivers switch to an auto-choice plan. If fewer drivers were to switch, the percent savings actually rises slightly. Based on the RAND study, if 50 percent of drivers switch, the percent savings on premiums increases to 31.9 percent for those who switch. For an explanation, see O'Connell et al. (1996), note 86.
15. If 50 percent of commercial drivers switch, the savings percentage increases to 37.1 percent. For an explanation, see supra note 14. In addition, since businesses already have workers compensation insurance to cover personal injuries, the percent savings for commercial policies is likely to be even higher than indicated in Table 1.
16. The term average premium refers to the average premium cost for the typical auto insurance policy. Actual policies vary significantly in terms of the type and number of vehicles, type and number of drivers, and other factors. Estimates for 1996 are Joint Economic Committee calculations based on data from National Association of Insurance Commissioners, State Average Expenditures and Premiums for Private Automobile Insurance in 1994 (Kansas City, MO, 1996), Table 3.
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