Robert Hoyt, department head and the Dudley L. Moore Jr. Professor of Insurance in the Terry College of Business, spoke on the radio show “Marketplace” about how a state’s legal environment has a lot to do with car insurance rates.
Hoyt said when insurance companies set rates, they look at how likely drivers are to sue each other and even how often juries decide to award for damages. He said state laws also have an impact.
“The states that have the highest auto insurance costs do happen to be the no-fault states,” Hoyt said.