Free enterprise is the freedom of private business to operate with little or no regulation by the government. Do consumers or private automobile insurance companies benefit from free enterprise or State regulations or not? Let’s see.

When a consumer buys a motor vehicle, an insurance policy must be in effect before a license plate will be issued to operate that motor vehicle on Pennsylvania roadways. Is that free enterprise? No.

If the owner of a motor vehicle loses automobile insurance coverage due to non-payment of premiums or cancellation, the license plate must be returned to the Bureau of Motor Vehicles. Is that free enterprise? No.

When the owner of a motor vehicle renews the registration, a policy number for a valid automobile insurance policy must be listed on the application or the renewal won’t be processed. Is that free enterprise? No.

Policyholders with no or poor credit ratings pay higher insurance premiums even if they were never late in making a payment to the automobile insurance company. Is that free enterprise? No.

Automobile insurance consumers are not benefiting from free enterprise, but the auto insurance lobby is making sure that the companies are benefiting from state regulations.


David L. Faust,


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