Smart Auto Insurance Blog

As of October 1, there was a new Arizona auto insurance law implemented according to an article by Adam Rolnick found on usprwire.com about Oasis Insurance.  The bill was passed the previous legislative session and it’s known as HB2224. 

October 1 and going forward judges are required to assign penalties for Arizona drivers who don’t carry auto insurance coverage.  About 87% of tickets that were issued because drivers were not carrying insurance were dismissed or the fines were lowered.  The new law says there will be no dismissal of these charges. 

The first offense will carry an approximately $720 penalty which cannot be waived.  About $970 will be the fine for second time offenders.    If you are caught a third time driving without auto insurance the fine will be up to $1200 and your license will be suspended for a year.  Not only will your license be suspended but you will be required to carry SR22 insurance documentation once you get your license back. 

Before this law was passed, Arizona residents who were caught driving without insurance would often purchase the insurance before the court date and show their proof upon the judge’s request.  The new law says this will not be possible going forward and the fines still must be paid.

As the unemployment rate increases and the state of the economy continues, more and more people are expected to drop their auto insurance.  This is according to the article “More Motorists Expected To Drive Without an Auto Insurance Policy” by John Pirro found on live-pr.com. 

The article states that many people see a strong correlation between unemployment rates and the number of people driving without auto insurance.  According to a study from the Insurance Research Council, about one in six drivers will be driving without auto insurance by 2010.  One of the main problems with this trend is that responsible drivers who follow the law and carry the proper auto insurance coverage end up paying more to account for accidents caused by uninsured motorists. 

The consequences for driving without auto insurance are getting harsher.  For example, the Pennsylvania Department of Transportation will suspend a driver’s vehicle registration if they are caught without proof of insurance.  Many of these people driving around uninsured believe they simply cannot afford the month to month cost of carrying auto insurance, but the truth is that it can end up costing you a lot more money in the long run if you are in an accident or caught driving uninsured.

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.

According to the article “Insurer Groups at Odd with Proposed Wisconsin Auto Insurance Bill” on insurancejournal.com, Wisconsin lawmakers have proposed legislation that would increase Wisconsin auto insurance rates for low and middle income auto insurance customers.  This information is according to the National Association of Mutual Insurance Companies and the Property Casualty Insurers Association of America. 

Twenty to twenty-five percent of all insured drivers in WI would be negatively affected by this new Wisconsin auto insurance provision which is in Governor Doyle’s budget.  The initiative includes increasing the required per-person injury limit 4 times the current level by raising personal auto insurance financial responsibility limits, increasing the minimum on medical payments to $100k and also making UM coverage and UIM coverage mandatory at 100/300 limits. 

PCI shows that low and middle income insurance customers in the west, southwest, north and east central counties of WI would have the highest percentage increase in their liability premiums.  Milwaukee would receive the highest dollar increase.

Drivers by the thousands across the state of North Carolina could enjoy some relief from the recent spike they have experienced in their auto insurance rates due to a bill that recently passed through the senate with flying colors.

Essentially the bill would eliminate the recent added requirement that all automobile insurance provide the same level of uninsured and underinsured protection  as it does liability coverage.  The bill, which pased the senate by a 48-0 vote passes the house, it will go into effect October 1.

Other information about North Carolina Auto Insurance.

Brooke Thatcher from KUSA reports that the number of drivers without Colorado auto insurance is growing, from an already shocking 15% in 2007. The economy is causing people to cut back on car insurance, but doing so could be more dangerous to their finances in the long run. If you get into an accident while driving uninsured, your income and assets could be garnished!

Thatcher suggests safer ways to save money on auto insurance:

• Raise the deductibles for comprehensive and collision coverage, and or/lower their coverage limits. (However, don’t skimp on uninsured motorist or liability coverage.)
• Talk to your insurance provider; they may be willing to help you modify your plan.
• Get auto insurance quote comparisons from several companies, and see if you can get a better deal on your rates.

In Newsday, Tom Incantalupo reported that the Insurance Research Council, and industry group, is predicting an increase in uninsured drivers for 2010. Their projection is that 16.1% of all drivers in the United States will be driving around without auto insurance, an increase from 13.8% in 2007.

The IRC blames this state of events on the economy, because consumers are trying to cut back on expenses. With the unemployment rate rising at a similar clip, it’s somewhat understandable that keeping up with your auto insurance premiums may fall to the wayside. Still, it’s a bad idea to let your policy lapse. For one, when you eventually buy insurance again, your premiums could see a sharp increase. Not only do uninsured drivers risk fines and other legal punishment in most states; they also cause the rates of insured drivers to go up when they’re involved in a crash, Tom says.