In no-fault auto insurance, dollar thresholds are better than verbal ones at reducing costs.

Question

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Verbal thresholds, which require the injury to meet a certain verbal description (e.g., "serious injury"), tend to be more effective at reducing costs because they are less susceptible to inflation and can be more restrictive than dollar thresholds, which specify a minimum amount of medical bills before a lawsuit can be filed.

In No-Fault Auto Insurance, Dollar Thresholds Are Better Than Verbal