Auto Insurance Rates May Encourage the Uninsured

According to the article “Car Insurance Scofflaws Raise Health Mandate Doubt” by Kristen Wyatt from the Associated Press found on Google, thousands of people on the road do not carry auto insurance even though most states require it. This raises the question of the effectiveness of a health insurance mandate working. It is something Congress continues to consider.

There have been auto insurance mandates out there for about 40 years and the insurance industry says it has not necessarily made the roads safer nor has it lowered auto insurance rates. The President and CEO of the Property Casualty Insurers Association of America believes that a driver’s personal financial situation is a better indicator of whether or not they will carry auto insurance. High auto insurance rates may force a driver who is strapped for cash to go uninsured.

States with higher poverty levels have a similar correlation with the amount of uninsured drivers are on the road. People cut back on auto insurance when they can’t afford it and there is a real possibility that if they make health insurance a requirement the same thing will happen. People cut costs where they can in times of trouble and although health insurance and auto insurance are both highly important coverages, people risk going without it to put food on the table and keep water in their home.

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