I just read an article on KSL.com (read it here) that talks about a new state law regarding auto insurance. If you are caught driving your car without insurance the police may impound your car. I don't know all of the logistics as to how they will determine if you have insurance or not and that will probably be a challenge for them, but I really like the idea.
I like the idea for a few reasons. First, I was involved in an accident 2 years ago with a person that had no insurance. At the time I was driving a 1988 Acura that wasn't worth much more than $300, it was a piece of junk but I loved it. I was on 5600 West in Salt Lake City turning into the Wal-Mart when someone ran a light and hit me. It didn't make sense to file a claim since my car was worth less than my deductible would have been. Luckily the person that hit me agreed to pay for the damages out of his own pocket but if he wasn't feeling so generous I would have been stuck paying the bill. I am not the only person to have had this problem. The last numbers I saw show that 14% of the drivers on the road do not have auto insurance. That means 1 out of every 7 people on the road, and you are one of those 7, have no auto insurance. So look at the 3 cars in front of you and the 3 cars behind you, one of them has no car insurance.
Hopefully this law will encourage them to go and buy insurance. Another reason that I like this law is because in time it should lower the cost of insurance for all of us. As you may or may not be aware you pay for uninsured motorist coverage on your insurance policy. In the state of Utah that is an optional coverage, but I don't think any insurance agent would recommend going without it. This coverage protects you in the event that you are hit by someone with no insurance. If the amount of uninsured drivers drops than the risk of being in an accident with one would also drop, that should mean that the rates for this coverage will also drop. You don't pay much for uninsured motorist coverage, but every little bit counts. I will write about ways to lower your insurance premium next week, maybe that will help some of that 14% find a policy they can afford. Have a great weekend, and drive safely.
Friday, May 30, 2008
No Insurance = Lose Your Car
Subscribe to:
Post Comments (Atom)
2 comments:
California (where I've just moved from) has had this law for a few years. They can even take ownership of your car if caught DUI 3x in a 5 year period (I think it's 3 times).
Yeah a lot of people do not realize that automobile insurance is necessary. Every time it may not be a sensible idea to pay out of pocket. What if someone passes a lawsuit? How much can one bear out-of-pocket? There are so many things to consider.
Post a Comment