Giving Motorists a Choice between Fault and No-Fault Insurance: An Economic Critique

In this Article, Professor Carr responds to the proposal by O'Connell and Joost whereby motorists are given a choice between fault and no-fault insurance. Though appealing, there are situations where free choice is inappropriate. This Article examines those situations and argues that free choice of liability rules and insurance regimes will be socially harmful due to the phenomenon of externalities.