You know that saying “Don’t mess with Texas”? Well, Texas uninsured motorists may want to take that to heart. Texas passed Senate Bill 1670 to reduce the rate of uninsured drivers, ranging from 15% to 20%, or 4 million out of 20 million Texas drivers (Texas has required drivers to be insured since 1981). Because Texas borders Mexico, traffic back and forth over the border compounds the uninsured motorist problem.
Texas drivers are required to show proof of insurance annually when vehicles are registered and inspected. Insured drivers pick up the cost for uninsured drivers, and that cost is substantial, with estimates running just under a billion dollars annually. While the cost of uninsured motorist coverage can be dramatically reduced through compliance with the TexasSure program, there is and will always be a need for uninsured motorist coverage to protect against those uninsured motorists that slip through the cracks.
Texas mails out about 100,000 letters to uninsured drivers in multiple languages. Some letters are for inaccurate VIN numbers. If that is the problem, check the Vin number on your insurance policy with the VIN number located in your car. Get the information corrected to avoid problems later. If Texas is successful in getting mismatched information corrected and gains more compliance from uninsured drivers to buy insurance, this should help cut down on the number of uninsured drivers in Texas.
The Amount Uninsured Drivers Can Be Fined
Uninsured drivers receiving citations for lack of insurance can be fined between $175 to $350 for a first offense. Repeat offenders can be fined $1,000 and face a 2 year license suspension.
Do Database Insurance Verification Programs Work
Several states, Colorado, Nevada and Utah successfully reduced the percentage of uninsured drivers from middle double digits to single digits, through the use of a database verification program. It is a fact that every state verifying insurance has substantially reduced the percentage of uninsured drivers. Right now, about half the states have database driver verification programs to check for uninsured motorists.
How Uninsured Motorists Try To Get Around The Law
- An uninsured motorists will buy insurance for the purpose of getting a car registered and/or inspected. When this process is completed, the uninsured motorists will immediately cancel coverage.
- Once cited for not having insurance, an uninsured motorist will appear in court with fake identification cards using the excuse that they just did not have their identification cards in their car the day the uninsured motorist was stopped and asked to provide proof of insurance.
How Texas And The Insurance Industry Can Avoid Database Problems
To get the best results from a driver verification program Texas must avoid these problems:
- Fraudulent insurance cards.
- Stop drivers who buy temporary insurance to get registration and car inspections and then cancel coverage shortly after.
- Keep databases current with weekly updates.
- Correct unmatched information from recent car buy/sell situations.
What drivers should do to avoid problems
- Don’t rely on databases for coverage verification. Keep you insurance card in your car.
Is Uninsured Motorist Insurance Required or Recommended
When Is Uninsured Motorist Coverage Necessary?
Differences Between Uninsured and Underinsured Motorist Coverage
What is Uninsured Motorist Bodily Injury Coverage?
Do I Need Uninsured Motorist Coverage?