Drivers dropping insurance to save money

[Liberal_in_LA]

http://www.theindychannel.com/news/18419499/detail.html

Experts Concerned Hoosiers Dropping Auto Insurance
Legal Concerns, Crash Costs Make Cutting Bad Idea

POSTED: 7:15 am EST January 6, 2009


INDIANAPOLIS -- Many Hoosiers looking for ways to cut costs in economic strife are cutting back and even canceling automobile insurance.

Winter weather typically leads to plenty of crashes on Indiana's roads, and experts are concerned an increasing number of people involved won't have insurance, 6News' Rick Hightower reported.

The Insurance Institute of Indiana said there are a multitude of reasons why dropping insurance is a bad decision.

"If you have a family, you have to have their interest in mind in terms of protecting them in case of lawsuits, not even talking about the law, which compels you to do it," said Insurance Institute President Stephen Williams. "That ought to be not a choice anyone would make, for their own sake."

[pl259]

1. I thought all states required insurance to renew tags/registration.

:shrug:

[shraby]

2. Nope, not all. Wisconsin doesn't.

[meow2u3]

5. Pennsylvania does require insurance to renew registration

as well as inspection and emissions testing.

[tech3149]

17. PA also requires insurers to notify the MV Dept.

when a policy is canceled. I know Indiana is a lot more lax on enforcement than PA, but it's just plain stupid not to cover your ass to save a few bucks. I might not like paying for something that I will probably never use, but it beats being liable for something that I could go broke paying for, no matter how unlikely.

[pl259]

14. Well, it seems that UM coverage is mandatory...

http://www.carinsurancerates.com/states/219-wisconsin-car-insurance.html

[Geoff R. Casavant]

3. Even those that do require only a small amount

Lots of folks "buy" a policy just to get the sticker, then cancel it afterwards.

My draconian solution: involved in accident + no insurance = minimum 6 months jail time, more depending on extent of damage and injuries.

[Tangerine LaBamba]

7. Then the insurer is obligated to notify

the state's DMV, who contacts the driver and tells him to get insurance.

That's how it's done here in VA.

[Donnachaidh]

8. yup, and then the drivers let it lapse after they get the tags

The cops are able to catch the non-insureds quicker in Georgia, because the insurance information is electronically listed through the computers in the police cars.

Here in Georgia I think the fine is 1K, as well as having your license pulled for at least 6 months. And while I don't think everyone dropping insurance is doing on purpose because they don't want to pay the bills - I think there is probably a good many people who are having to choose between paying rent or mortgages, and paying for insurance. It may be wrong to go without insurance, but people losing jobs and homes are sometimes forced into actions they normally wouldn't do.

It's hell out there in middle america.

[bunnies]

11. NH doesnt.

As we say "Live Free or Die".

[RebelOne]

15. Georgia doesn't. All that is needed is a certificate

that shows your car passed the emission test. But otherwise, insurance is mandatory, but not for renewing tags. I know because I just renewed mine.

[madokie]

19. Buy insurance go buy tag drop insurance get refund is how some do it here in OK

I actually did that once years and years ago when I was broke.

[Maine-ah]

22. Maine does

drop your insurance and the insurance company notifies the state.

[KharmaTrain]

36. For Some The Risk Is Worth It...

For predominately poor, the worst that happens is they have their car confiscated and have their license suspended. But it's still cheaper to go out and get another car than it is getting the insurance. They'll take their chances with the legal system and hope they don't get caught.

[meow2u3]

4. I think states should drop mandatory insurance unless premiums can be effectively controlled

Drivers who drop their insurance not only risk steep fines, but also in some states, they risk having their cars towed, and can only retrieve them from the pound when they present proof on insurance. People can no longer afford the runaway premiums caused by insurance companies using credit rating instead of driving records to determine rates. Predators in the insurance industry are punishing drivers with clean driving records for being too poor amd/or broke to afford to pay their other bills, forcing families to choose between putting food on their families' tables and paying their bills.

Until strict rules can be placed governing how insurance companies do business, such as disallowing the use of credit rating to excuse overcharging consumers, thus making insurance prohibitively expensive, there ought to be at least a moratorium on mandatory liability insurance for drivers. I'd like to see the law repealed altogether, but the only way many drivers can pay for injuries and/or auto repairs is by taking out a liability insurance policy, and even then, it's not enough if someone driving an old clunker hits another person behind the wheel of an expensive luxury car.

[sinkingfeeling]

13. And those of us who do have coverage get to kick in extra bucks to pay for 'Uninsured Motorists'.

Really fair, huh?

[seabeyond]

16. no it isnt really fair. a pain in the ass and it hurts. just like working over 40 hr weeks

and making ao little just cannot cannot cannot pay all the bills needed to just survive

i have been poor. when i havent afforded insurance. and this will cycle down to no license and people who are harmless will be ticketed and arrested causing a further spiral down as they try to maintain the job that doesnt afford them to pay bills

it ALL sucks

this is what a fucked up economy does to ALL of us.

[immoderate]

6. Some countries include insurance in the gas tax.

It's a good system. The more you drive, and the bigger the vehicle, the more you pay. South Africa does it that way.

--IMM

[taterguy]

24. Not very fair to people who only buy gas for lawnmowers

[Greyhound]

27. You're not serious, are you? n/t

[taterguy]

28. Depends on how much money we're talking about

For a decade I only bought gas to mow my grass

I also don't think it's very fair to charge everyone the same, regardless of what vehicle they drive or what their driving record is.

A big hit in insurance costs is the major reason that people slow down and don't drive too fast. Most people can afford the fine of a speeding ticket but don't want to get stuck with a higher insurance bill.

[immoderate]

35. I think we're talking about pennies.

Consider the way insurance is figured now. You think that's fair?

--IMM

[Greyhound]

47. When CA passed it's law, it was $.05 a gallon and eliminated auto insurance altogether.

That was 1992 (IIRC). Of course the insurance industry tied it up in court until the state could no longer pursue it, so it was never implemented.

A lawnmower holds maybe 1/2 gal.?

[PVnRT]

44. He's serious

[12string]

25. insurance in a gas tax

I think if it is to be mandatory to have insurance this is the only fair way to accomplish that goal.

[Michigan-Arizona]

9. Arizona

A co-worker of my husband was sitting at a light, the cop behind him ran his plate only to find out his car insurance was no longer in force. He gave him a ticket, impounded the car, himself, wife & child had to walk home.

[Donnachaidh]

12. and that's the case in many states

So do you think that was wrong?

If that same coworker had an accident, and possibly crippled someone in the other car - do you think it would be okay for him to say "Sorry, no insurance" and just walk away from the devastation?

Or if that same coworker was rear-ended, and his wife and child were injured and had to be hospitalized, and the guy who rear-ended HIM had no insurance, would he just absorb those costs himself? Doubtful - he'd probably find the first lawyer to take his case and sue.

Ask him if having insurance would have been cheaper than the impound fees and the ticket combined.

[Michigan-Arizona]

23. Excuse me

Did I say it was right or wrong? I was just stating what they do in Arizona.

[lonestarnot]

30. And if they are jobless and hungry, how do you propose they pay car insurance?

Doesn't matter which one is cheaper then does it?

[taterguy]

31. If they don't have a job to go to why are they driving around?

:hide:

[lonestarnot]

32. Maybe they had to move the house?

:shrug:

[Liberal_in_LA]

33. The homeless sleep in their cars.

[cabluedem]

42. Lucky he didnt get to spend time in Sheriff Arapio's tent city jail.

Hot in the dsy and cold at night. Whatta guy! NOT!

[MagickMuffin]

10. In Dallas, TX if you don't have car insurance the city can now have your car towed

I heard this on the local news the other day. So, I guess the city will keep your car until you can show proof of insurance before getting car back.

[shanti]

18. gotta have it in Cali n/t

[Greyhound]

26. Apparently this hasn't happened to you, but it's common as hell.

Woman backs into my GF's car at a gas station, does over $3,000 damage. Registration is bogus, woman is Mexican national, fake insurance, woman disappears, my GF's rate almost doubles due to claim.

Great system they got there, but at least the auto insurance industry was able to save them from socialism after Californians overwhelmingly passed a pay at the pump, no-fault insurance program.
:eyes:

[sarcasmo]

34. Got a letter in our Insurance bill about how much more we pay thanks to our credit.

Michigan and the Insurance industry SUCKS!

[Horse with no Name]

20. Texas now has a databank

that is hooked to insurance companies and all the troopers have to do is run your plates/VIN through the computer and it will verify coverage or not.
The county tax assessors have access to this computer as do the inspection stations. I didn't even have to show my insurance card when I got my tags the last time.
There is absolutely NO WAY to drive in Texas without insurance without running the risk of having your car towed. I am not sure if they can randomly check plates but I am pretty sure they do and then stop you for some minor violation.

[cabluedem]

43. Cops can run any plate they wish. They dont need PC to do it either.

if something comes up, the cherries start flashing.

[Horse with no Name]

45. I guess profiling and probable cause don't matter in your world.

And no, they cannot run your plates randomly. They can make up any reason they want--and they will-but they aren't supposed to do it.

[cabluedem]

46. When you registered your car you gave per se permission for police to run your plates.

that's how the DWI laws work as well. You are profiled all the time no matter your color, BTW.

[blues90]

21. Lower the damn insurance rates then.

These insurance companies rape people and many who are good drivers. A lot of the cost is if you have a new car or sit with payments if the car is ruined the bank gets their money.

[NNN0LHI]

29. I had to let my car insurance lapse during another Republican administration

The insurance company will get it all back in higher rates when you finally do get it as a penalty for driving without coverage. They did me.

Don

[MindPilot]

37. Oh great! Just what we need -- more irresponsible drivers out there

Here in California something like 40% of the people on the road at any given time don't have insurance.

[seabeyond]

40. i dont think lack of insurance ='s irresponsible driver. i dont think it is indicative of their

driving at all

i think what it is indicative of is an increase in all costs and wage not able to support increases. or .... being poor.

[Le Taz Hot]

38. Take heart, Indiana.

You can always do what California did -- FORCE you to pay for insurance. You see, they promised us, with a straight face, that our premiums would be going down because EVERYONE would have insurance. Now, I know this is going to be hard to believe because we all know how benevolent insurance companies are, but our rates actually went up -- eventually, by a LOT. :mad:

[MindPilot]

39. That's fer sure. Caltrans should set up roadside execution units

for people who don't have insurance.

To me that's more irresponsible than driving drunk.

[Le Taz Hot]

41. The problem is, when you are trying to decide

whether to pay your rent or pay your next 6-month premium, most people will take a chance that they won't get in an accident and drop the insurance. I know when I was in college I was in roughly the same situation except it was my next semester's tuition (state college) instead of rent. Tuition won out.

[REP]

48. That's kinda bogus

I've been poor - very, very poor - and my liability insurance was about $99 for six months. My full-coverage insurance on two new cars with very low deductibles is now less than $1,000/6 months total, so I'm not buying that (rent at my crappy old studio apt was higher than 1K/mo).