There are many uninsured drivers today which can push up premium costs. Not only do the uninsured drivers cost the insurance buying motorists higher premiums they are costing everyone higher taxes for enforcement and tracking of the uninsured. Almost one in five drivers today has no insurance for their vehicle. They must at least buy state basic liability coverage enforced in their zip code.
According to the latest statistics, insurance clients paid more than fourteen billion dollars in 2009 for uninsured motorist coverage. What is more staggering, over twenty three states require car owners to buy uninsured auto coverage. What that means is you are paying for your insurance and also the uninsured. Those who pay premiums are covering the expense – not the insurance companies.
Drivers go without auto insurance for a few reasons. Some drivers cannot afford insurance and some drivers with surcharges for accidents or traffic violations don’t want to pay the hefty fees that are the result of a poor driving record. So, these high risk drivers drive with no insurance.
Some states are trying to work on programs to reduce the issue of uninsured drivers. One is a technology which will help seek out the uninsured driver. Law enforcement is asking the insurance companies to report lapses in policy coverage. Most states now have police vehicles with a scanning system to detect uninsured motorist on the roads. In the state of California many police officers are pulling over more than three uninsured motorist a day.
Other measures states are using to try and minimize uninsured motorist is to give higher fines and if the problem persists the driver could get jail time and even a device to make sure the car will not start. Other programs limit the capability of uninsured drivers to claim money for specific types of damages they suffer after automobile crashes. In some large cities there may be low cost auto insurance schemes for key workers who are not earning much since the costs can be prohibitively high.
States with tougher penalties likely have lower numbers of uninsured drivers. For example, California has a program which uses a vehicle insurance corroboration system to help to track down uninsured drivers. The system permits police officers to enter auto information into an internet database to see whether a driver carries insurance.
According to the State of California the program has helped cut back the state’s uninsured rate from about twenty-three to thirteen percent. And since California implemented the program other states throughout the US are looking to make the same enhancements.
Kentucky and some other states at random select automobile owners and ask them to show evidence of insurance. California targets only drivers who seem to be uninsured. In California, insurance firms must electronically submit information every week on all their automobile insurance plans to the company that runs the program.
The state then attempts to match each registered automobile to a policy. When a vehicle seems to be uninsured law enforcement sends a letter so that the owner can buy insurance or asks the owner to provide evidence of insurance.
It aims to stop drivers who make an effort to circumvent the law by using a fake proof-of-insurance card. Or the ones who purchase insurance solely to get a card then drop coverage as quickly as they have replenished their automobile registration.
Only a few states are fitted out with the most recent auto insurance corroboration systems which check coverage by communicating electronically with insurance firms rather than depending on state databases that could be a week, old and inefficient. Those zip codes will be affected the most with the rates increases due to losses insurers suffer from underinsured people.
Other states with even higher percent of uninsured drivers also are tackling the issue. Alabama is the worst state in the country for uninsured drivers with a staggering twenty-nine percent in 2010. To reduce the quantity of uninsured drivers Alabama is rolling out an auto insurance corroboration system similar to the State of California with hope to have the system in place by 2014.
It may be a pain in the system and in your pocket but it is better to be safe than sorry later on. So, you should check if you have uninsured driver insurance already within your policy package. Otherwise, you might need to get quotes for adding it.
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