In 5 States, 20% or More of Drivers Have No Insurance; Countrywide Average Increases

March 15, 2018

  • March 15, 2018 at 12:48 pm
    Doug Spencer says:
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    Some insurance is better than nothing. Any research done in CA how many only have the legal minimum 15/30 K liability? This may have been OK in 1974 when required (when you could buy a house for $30 K). What is the real non and under insured percent in CA (30-35%)? Real concerned when CA DOI was trying to enforce the offering of the miminum 15/30 K liability routine when it appears irrational.
    Baby step update to 25/50 K minimum liability in CA would really help those who are not at fault with modest income (who may bare the brunt of current accidents).

  • March 15, 2018 at 1:22 pm
    Kerry Ravi says:
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    In Florida you are not required to carry ANY liability insurance. Disgraceful.

    • March 15, 2018 at 4:17 pm
      NC P&C Agent says:
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      Technically you do have to carry PD liability, but with no BI (and only $10K PD) it may as well be none.

      • March 15, 2018 at 4:54 pm
        Rosenblatt says:
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        $10K minimum in PD? Wow. Better not hit a car made after 2015 with all the advanced technology inherit in those vehicles … and that’s not even touching on the higher cost to repair electric vehicles.

  • March 15, 2018 at 1:51 pm
    CCC says:
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    Make sure your customers have adequate UM and UIM limits to help offset all the uninsured and underinsured drivers…

    • March 15, 2018 at 4:18 pm
      Michael Krasner says:
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      All brokers/agents should alert their clients to the exposure and offer Uninsured and Underinsured Motorist Coverage where available.

      Another short for in Florida is the minimum limits are $10,000 BI, in a world of many older drivers, and lots of out of state drivers, getting into a car in Florida is like a game of Russian Roulette

    • March 16, 2018 at 4:14 pm
      Agent says:
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      Perhaps there should be laws against writing month to month policies like many states do. The customer only gets it for registration and inspection and then goes without for 11 months of the year. Almost half of all auto accidents my customers have where they are not at fault are with an at fault no Insurance driver. Yes, I sell high UM/UIM limits for my customers.

      • March 25, 2018 at 8:14 pm
        okt0ber says:
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        I’ve written those for customers who only plan to own the vehicle for a short period of time – inherited vehicles that are for sale, for example. There is a purpose for short term policies. People visiting from Mexico have to have them for just the amount of time they’re in the US. Why should they have to pay for a 12 month policy? And if your idea comes to fruition, why should I, as the agent, have to spend the extra time collecting cancel request letters to cancel a policy that didn’t need to be an annual policy to begin with? Are short term policies abused? Yes, But there is plenty of technology available today for DMVs to suspend a registration when the insurance policy lapses. Your solution does not solve the problem, anyway. People can cancel long term policies after the first month.

  • March 15, 2018 at 2:24 pm
    vox says:
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    This is an interesting ranking of states. That Florida comes in first, or last, is no surprise.
    Wages are low and premiums are high. The bundle of dark blue in the deep south also does not surprise. One can scarcely find a measure of social health in which they do not come in last. Again, it’s low wages. Michigan? It’s high cost, folks. This is not a legal matter, it’s an economic matter, with few exceptions.

  • March 15, 2018 at 7:21 pm
    DNCs Coll(F)usion GPShip Strzok an IceberGowdy says:
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    This isn’t surprising, given how the US economy stagnated then staggered to slowly recover over the last 8 years leading up to 2017. The three key reasons for uninsured drivers are: 1. the poor can’t afford it, 2. the laws of some states ‘allow it’ through the law or the lack of enforcement, and 3. illegal aliens driving in the shadows. None of this was discussed in the article, which doesn’t lead to much discussion of the ways to correct the problem.

    It is a big problem when people act irresponsibly, harming others physically and financially. This is something ALL politicians are responsible for fixing, but, apparently, many aren’t motivated to do so. I wonder if the Trump Administration and ICE’s crack down on Illegal Immigrants will reverse the upward trend in uninsured drivers? The tax reform might help people who are on the boundary between poverty and making a living by giving some of them jobs that weren’t available when taxes on corporations were (far too) higher than now.

    • March 23, 2018 at 1:25 pm
      Chris says:
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      I’ve noticed since 2016 all crime is blamed on illegal immigrants. Once 45 builds his wall and kicks out the illegals the US crime rate is going to drop to 0.

      • March 26, 2018 at 1:38 pm
        jw says:
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        it will be going negative after death penalty for drug dealers and wall.

  • March 16, 2018 at 7:58 am
    Don Birkholz says:
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    I have never trusted studies that pretend to know what per cent of drivers are driving without insurance. This is done to increase the hysteria on prodding legislators to enact tougher laws and pretending someone knows what it going on. The current online database system where a patrolman stops a driver and checks the database for insurance data is heavily flawed. The police report in the local paper is saturated with drivers cited for no insurance and yet most of these “driving without insurance” produce evidence to the local court that they indeed had insurance.

    And I would like to see these articles list some extreme examples of the poor having to pay their entire yearly salary for auto liability insurance, which they of course, cannot afford. We all know that an indigent household with three teens has to pay at least $3,000 a year for auto liability insurance which would be around 25% of its income.

    Why not go out and find a rancher with half a dozen of vehicles that he has insured over 50 years, never had an accident and figure out how much money he has lost over the 50 years because he came out on the losing end of obeying with the law. My figures indicate he would be 80,000$ worse off financially because he obeyed the law. And do a study on all these other people in a rural county and find out how much money is leaving these rural counties and going to counties with higher rates of auto accidents.

    • March 16, 2018 at 10:27 am
      SWFL Agent says:
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      I doubt the IRC’s intent is to create “hysteria”. I would agree that the online databases are not accurate and not updated on a timely basis but I would argue that if some drivers are able to produce evidence of active insurance after the traffic stop, there may be just as many that show an active ID card to the officer at the scene when coverage has actually been cancelled at some time prior. The state of Florida estimates that 30%-35% of driver’s have no insurance and it’s probably pretty accurate based on our experiences. As you stated, the issue is economics – 1) insurance is expensive and getting more so every day and 2) when someone gets caught driving with no insurance or a suspended license the fines for these violations cost less that buying insurance. I suspect we’d have more people driving with no insurance and suspended licenses if so many didn’t have jobs where an active DL is a condition of employment. There’s really only one solution – Caught driving with no insurance or suspended license? Impound the vehicle until fines are paid and insurance is in force

    • March 26, 2018 at 1:36 pm
      jw says:
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      most states have “farm” registrations which are highly discounted rates by ins co. and no registration renewals.

  • March 16, 2018 at 4:15 pm
    MI no fault -- needs revamping says:
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    I believe MICH is the only state with unlimited and lifetime med benefits from an auto accident (no fault state, not tort). The kicker is that the rates auto insurance pays the medical providers are, by law, the gross charges of the provider – yup: 100% of charges. The providers use this ‘windfall’ to make up for losses from medicare/social programs and bad debts etc..

    We as insureds also have to pay roughly $150 per year per (regular) car insured for road usage to the MI Catastrophic fund, to cover those cats. There is little transparency in this fund and there is no credit/insurance scoring discount on this assessment, as well as no allowance for the number of drivers or residents of the household — it’s based on the number of cars insured.

    Premiums of 10,000 per year for “PLPD” are not uncommon for low credit scores, hence the high rates of uninsured. As an example, this could be on one auto, with no driving incidents with uncoordinated medical coverage, aka “full med.”

  • March 22, 2018 at 1:35 pm
    AHYES says:
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    Interesting, compare this online to the states with the highest immigrant populations. Make your own observations/conclusions.

    • March 25, 2018 at 8:27 pm
      okt0ber says:
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      Not seeing the connection. Arkansas and Mississippi don”t have high immigrant populations. Texas is not in the top of the uninsured list.

  • March 23, 2018 at 2:16 pm
    mrbob says:
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    I have a real simple solution to this. Driving is a privilege not a right and as such comes with the responsibility that motorists have coverage to protect the others in the event that there is an accident that is the drivers fault. As such the state should go out and pull the plates off any vehicle that does not meet minimum financial responsibility requirements and then charge the offender a significant fee to get plate back for the vehicle so as to be self funding. By doing this it would be really easy for law enforcement to see a vehicle without a plate if they chose to continue to drive and at that point impound the vehicle with all costs to be paid by the offender.

    If the states would get tough on this it would not take long until the majority of people would do the right thing. As the system currently exists in most states there is virtually no chance of getting caught unless stopped for another issue so they just take the chance.



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