Uninsured Motorists Problem: Increased Premiums & Solutions

Today, one in seven motorists across the US has no coverage for their vehicles and this is a problem for the others because it pushes up car insurance premiums. They also cost the industry and economy due to tax monies spent on enforcement and tracking. They must at least buy basic state enforced Liability. Let’s consider the current position and look at possible solutions.

According to the latest statistics, policyholders paid more than fourteen billion dollars in 2009 for Uninsured Motorist coverage. It is now required to be included in the minimums in twenty-three states. In other words, you and everyone else are paying for the damages they cause. It appears to be companies paying more claims as a result. But they couldn’t care less because they turn around and increase rates to include them as well. Probably they have already done it.

Drivers go without auto insurance for a few reasons. Some cannot afford due to low-income. And others don’t want to pay high premiums due to recent accidents and traffic violations, which were totally their fault in the first place. They are now not only dangerous but also without a policy to compensate any damage and injury they may cause.

Some states are trying to work on programs to remedy the issue. As usual, they are utilising the electronic connectivity that can be established pretty quickly. First solution is to get carriers report auto insurance lapses automatically and directly to the DMV so that they can be chased up. So, the moment it is dropped the authorities have your number plate.

Most jurisdictions now have police vehicles with a scanning system to detect those vehicles on the roads. In California many officers are pulling over more than three of them a day. So, it isn’t easy to get away with it any more and the consequences are hefty.

Other measures include higher fines and jail time for repeat offenders. Some authorities run “no pay no play” programs that prevent such drivers making claims on others for their damages. Simply, if you don’t have Liability coverage for third parties you cannot ask compensation for own losses even if they were at fault.

In some large cities there may be low cost auto insurance schemes for key workers who are earning below a certain threshold and it is deemed not enough to be able to afford a policy. The essence of is that they are allowed to get lower limits so that the premium becomes affordable.

States are forced to get tougher with penalties and detection systems. And they seem to be working. For example, California has a program, which uses a corroboration system to help track them down. It permits officers to enter auto information into an Internet database to see the current coverage status.

The said program has helped cut back the Uninsured drivers ratio from about twenty-three to thirteen percent. Other jurisdictions are catching on the success story and implementing similar solutions.

Kentucky and some others select owners at random and ask them to show evidence. California targets only drivers who seem to be lacking any Liability coverage. They build an up to date database to check against by requiring carriers to provide weekly updates on existing policies.

The state then attempts to check each registered automobile against the data received and follow up with the owners of vehicles that appear to have nothing in place. As a result, they know that they have a target on their back and cannot run undetected any more. They either have to buy coverage or take the auto off the streets.

It aims to stop drivers who make an effort to circumvent the law by using a fake proof cards or catch the ones who purchase a policy solely to get a card and drop quickly after registering their automobiles or renewing it.

Only a few states are fitted out with the most recent auto insurance corroboration systems, which check coverage by communicating electronically with carriers rather than depending on own databases that could be a week old and inefficient. They probe the known trouble zip codes heavier to increase policy take-ups that would help to reduce premiums in the zip codes.

Others with even bigger problems are tackling the issue as well. Alabama is the worst in the country with a staggering twenty-nine percent in 2010. Alabama is also hoping to bring down the numbers by rolling out similar solutions.

It may be a pain in the system and in pockets but it is better to be safe than sorry later on. So, you should check if you have Uninsured Motorists coverage already within your policy package. Otherwise, you might need to get quotes for adding it.

Unfortunately, the problem is real and hiding your head in the sand would only make it worse. Simply, you know they are not buying it. So, you should count your blessing because there is a solution to help you in case one of them crashes onto you.