Currently, it is legally mandated in 48 states around the country that drivers have auto insurance. Yet, as the Insurance Information Institute (III) reports, around 14 percent of drivers on the road are uninsured. What’s worse, that number seems to be growing as the economy worsens. Those looking to reduce some of their bills appear to be opting for their car insurance policies to go first. But this could be a problem, not just because of the host of issues it could cause if you get into an auto accident, but because it could impact you in other ways.
Three Strikes
This week the State of Arizona passed a new law to try to cut down on the number of people driving around without insurance. The law will take effect on October 1st and was signed by Governor Jan Brewer. It will require drivers having three violations of not being able to provide proof of insurance within three years to be subject to certain conditions in order to get their driving privileges re-instated.
The state will be requiring that violators of this law submit proof of their financial responsibility before they will be allowed to get their license plates, registration, and even drivers licenses re-instated.
Like most states, Arizona requires motor vehicle owners to have insurance and to carry proof of it in their car. If they are unable to provide proof they can receive up to a $1,000 fine, depending on how many times they have committed the offense.
Surrounding States
Some believe that having such a law will help cut down on the number of uninsured motorists on the road. Others wonder what type of impact it may have on people who are cash-strapped and need their license and a way to work. Another important question being posed is whether or not this ends up being something that other states decide to follow suit on.
If the law works in Arizona, there is a good chance that other states may also adopt similar statutes. Even in tough financial times, the best route to take is to always make sure you have insurance on your vehicle. If you don’t, laws such as this will make it inevitable that your situation worsens should you be caught. It could end up costing much more in the end to show proof of financial responsibility and pay fines and fees to get your insurance and plates re-instated. If you are having financial difficulty paying your insurance, start by gathering some quotes and shop around for better rates. Consider taking a higher deductible, which will lower your rate, yet still provide you with legal coverage.
