Smart Auto Insurance Blog

It is against the law to drive without auto insurance in Arizona and most of the country.  You also must carry proof of insurance.  According to the article “Proof of auto insurance requirements changing in Arizona” by Delane Cleveland on fox11az.com, the law is getting stricter when it comes to carrying proof of Arizona auto insurance. 

Tony Riojas, the presiding magistrate for Tucson City Court says no proof of insurance is one of the most common citations that come through court.  Currently, if someone has to go to court to prove insurance, charges are often dropped or reduced but starting October 1 that will change.  Before you can get any reduction in fine not only must you show proof of insurance but you will also need to prove that you have not gotten an insurance violation within the past two years, or only one citation in the past three years. 

Repeat offenders can face fines up to $1,000.  Governor Jan Brewer signed the bill back in July to approve these provisions and insurance companies across Arizona approved.  They believe this bill will reduce the number of uninsured drivers on the road.

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.

According to a PRWeb Newsrelease found on Entrepreneur.com, the recession is causing many Americans to drop their auto insurance which can be extremely risky.  The Insurance Research Council found that one in six drivers may be uninsured by 2010 as the economy continues to struggle. 

In addition to the obvious risk of possibly getting into a car accident and having huge bills to pay, auto insurance should never be dropped for other reasons.  It is against the law to drive a car without auto insurance coverage.  It’s a crime in all 50 states.  Your auto insurance rates may increase when you do decide to reinstate your policy.  You may incur harsh penalties that will cost you a lot of time and money.  Your odds of getting into an accident with an uninsured driver are substantial so if neither of you are covered it can be catastrophic. 

Also, most states require that you carry proof of insurance at all times while you are driving.   You can even get your license suspended or receive jail time.  If you get caught driving uninsured, it goes on your record and your auto insurance rates will be affected as you will be placed in a high risk category, even though you may be a safe driver. Many auto insurance companies charge a reinstatement surcharge up to 50% since they consider these drivers irresponsible.  Bottom line, do not drop your auto insurance policy to save money.  It will end up costing you much more in the long run.  If you are desperate to save money, shopping around for a more competitive auto insurance quote is a much better route.