Obamacare May Cut Auto Insurance Rates, Study Says
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glegorly/Thinkstock(NEW YORK) — Obamacare may lower the cost of car insurance.
A new study from the RAND Corporation says the cost of several different types of coverage, including business liability, workers’ compensation and auto insurance, may be reduced. That’s because these policies often pay for treating injured people who don’t have medical coverage.
The Affordable Care Act has increased the share of people covered by private health insurance and Medicaid.
The changes “can generate potential cost changes as high as 5 percent or more in particular states and insurance lines,” says the RAND report.
As coverage grows, insurers won’t have to put as much money aside to pay for accidents involving uninsured accident victims.
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