I think the issue that coasting laws are trying to address is that the driver cannot simply press the accelerator to gain speed if the car is shifted into neutral. If you are in neutral, you first have to shift into drive before you can accelerate, losing precious reaction time.
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3) Technically, if coasting is illegal, then the Insight will get everybody in trouble. They all do autostop from about 18-20 miles per hour, then you are coasting.
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You do not have this reaction time loss when coming out of autostop. The car quickly restarts on its own when you press the accelerator without additional actions from the driver.
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4) How would anyone not riding in the car with me know that I'm coasting?
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No one would know, but I wouldn't want to try to explain it if there was an accident.