The Top Reason Why Millions of Drivers are Uninsured

Records from the Insurance Research Council, an independent, nonprofit research organization, show that one in every eight drivers in the US continues to drive freely despite being uninsured. Car liability insurance, which is a necessary document during renewal of driver’s license and car registration, is mandated in 48 states. Drivers will also have to readily show proof of their insurance coverage whenever a traffic enforcer asks for it or when they get involved in an accident. However, if millions of drivers are truly uninsured, then how are they able to renew their license and register their car?

New Hampshire and Virginia are the only two states that allow their drivers to choose whether to have insurance coverage or, in the case of New Hampshire, simply post a bond with the state, while in the case of Virginia, to pay the uninsured motor vehicle fee to their state’s Department of Motor Vehicles. To be able to renew their car registration, what uninsured drivers actually do is purchase an insurance policy (this will give them access to having an insurance card), re-register their car and renew their driver’s license, and then discontinue paying their premiums.

The most common reason given by drivers for not maintaining their insurance is the high cost of insurance premiums. Obviously, these drivers think that, by not maintaining their policy, they will be able to save a lot. On the contrary, according to Habush Habush & Rottier S.C. ®, not having insurance can be a lot more costly; it also invites more financial risks. If caught, an uninsured driver can be required to pay costly fines besides losing his/her driving privileges and be required to purchase a policy which, this time, will be more expensive.

Though there may be truth in drivers’ claims that insurance policies are expensive, they may be left with no other option than to carry one. There is one way of finding a cheap policy, however, which can include the types of coverage that they believe they need to have – by asking independent car insurance companies for insurance quotes, which will allow them to compare cost of policies from one firm to another. These quotes are free and have been proven to be truly useful and helpful to many drivers.