In Notice 2007-84, the Service expressed concern with plans that provide all or a substantial portion of benefits to owners and/or key and highly compensated employees. The notice identified numerous specific concerns, among them:
Younger drivers who do not have much experience may only have expensive policies. In order to maintain lower costs, applying for a third party coverage may be the solution, as this can assure that the people who may ask for a claim will be compensated. Older drivers should pick the most comprehensive in their choosing. If a full policy type is chosen, the repairs to the car of the insured will be paid and also the cars of the other people who were involved. Experienced drivers who never claimed bonuses should have low premiums.
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