The thing is, there is no "Auto Insurance Industry" any more than there is a "Sugar Bowl Industry". Auto insurance is just a variety (aka "line") of Property/Casualty insurance, and to the best of my knowledge there are no commercial entities who underwrite auto insurance and only auto insurance (except for some special-purpose pools for high-risk drivers in various states, like New Jersey); those that look like it are basically subdivisions of bigger companies. If for some reason auto insurance stops being a profit center, well, Property/Casualty is a big field, and there're lots of other lines in which to make money. Plus, if things work out like you envision, all those other entities will have to carry their own insurance, because they're sure as hell not going to pay any settlements out of their bottom lines.
-- Bob
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Then the horns kicked in...
...and my shoes began to squeak.
-- Bob
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Then the horns kicked in...
...and my shoes began to squeak.