Smart Auto Insurance Blog

According to the article “Senate Approves Bill to Increase Auto Insurance Liability Coverage” by Michael Dresser on baltimoresun.com, quotes on auto insurance in Maryland are due to change because of the new law.  The Senate voted to raise the minimum liability limits for auto insurance policyholders for the first time in about 38 years.

The final vote for this landmark decision was 27-20, sending the bill to Governor Martin O’Malley for his approval.  The law was approved after a tough fight led by the Senate Republicans as well as some Democrats.  The measure put state’s lawyers and some of their clients against auto insurance companies and advocates for the poor which was a point constantly made by GOP senators.

The new bill is expected to affect over 200,000 Maryland residents who have the minimum amount of auto insurance coverage.  Most of the approximate 2 million policyholders who carry more comprehensive protection will not be as affected.  It’s still to be determined exactly how Maryland auto insurance quotes will be affected.

According to the article “Car Insurance Mandate in Wisconsin Budget; No Driver’s Card for Illegals” on insurancejournal.com, Wisconsin auto insurance policy holders will have to buy liability insurance for their cars, but illegal immigrants will not be issued special cards to drive legally.  This is under the new proposed Wisconsin budget legislature.

This new requirement has been considered and proposed since the 70’s, but never put through because of the insurance industry.  Governor Jim Doyle has expressed his support for the new proposal.  It would take effect next year.  Anyone pulled over with no insurance card would be subject to a fine of $10.

Posing more of a debate was the driver’s card for illegal immigrants.  Immigrant rights groups and the police argue for the cards claiming they make the roads safer by ensuring everyone, even illegal immigrants, carry ID and are able to get auto insurance.  Doyle did not propose this and the Senate rejected it in the Wisconsin budget.

Carla Castano from KXAN Austin recently reported on a new trend: police are pulling over drivers, and towing their cars if they lack Texas auto insurance. The ordinance came into effect last week in Dallas. Reportedly, Austin is planning to consider a similar ordinance. Texas’ Auto Insurance Verification Program, run by the state’s Department of Public Safety, is able to run a person’s license plate in order to tell if they have liability insurance.

These new laws may result in more defensive driving by the uninsured to avoid being pulled over in the first place, predicts Carla. Even though it already costs about $250 to pay a ticket for driving without insurance in Austin, almost a quarter of the population was still driving uninsured.

Insured drivers may need to have uninsured motorist coverage to protect themselves. The economy is making more drivers forgo car insurance in favor of other essential needs. Unfortunately, uninsured drivers often lead to higher auto insurance premiums for everyone; often, they also have to pay penalties once they reinstate their insurance. 

(Photo credit: qthrul under CC 2.0)