Auto Insurance Mandate: Is it effective?

As of June 1, 2010, Wisconsin will become the 49th state in the US to require drivers to have auto insurance coverage. The only state left to not have this requirement will be New Hampshire. This is according to the article “Are you a Wisconsin driver? You’ll need auto insurance by June” by Paul Gores on JSOnline.com.

It is surprising to many that there are still 2 states that do not require auto insurance since 48 states have required it for years. Senator John Lehman (D-Racine) believes having auto insurance is viewed as a responsibility of being a good US citizen. If you cannot manage affordable auto insurance, then you probably cannot afford to pay if you are in an accident, therefore should not be on the road to begin with.

But the Insurance Information Institute in NY is questioning the effectiveness of having an auto insurance mandate anywhere. A study by the Insurance Research Council estimates that in 2007, 15% of Wisconsin drivers were uninsured, and that is only slightly higher than the national average of 13.8%. Even in the states where proof of insurance is required to register a car or get a license, it doesn’t mean the driver is keeping the insurance once they walk out the door. They can very easily turn around and cancel their policy or just not pay their premiums to save money. The only way they would get caught is if they were in an accident or got pulled over. This is of course against the law in 48, soon to be 49 states. Whether your state requires auto insurance or not, there is no question that it’s important to be covered for your financial safety and for the safety of other drivers on the road. Getting multiple auto insurance quotes is the best way to see what’s available.

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