by Lyle Adriano
Several Midwest states have recently expressed renewed interest in reducing the number of uninsured motorists.
A survey conducted by the Insurance Research Council found that 12.6% of the country’s motorists are uninsured. While the percentage of uninsured motorists has considerably dwindled in the past 20 years, the figure is still substantial.
The ratio of uninsured to insured motorists varies per state, but the Midwest has some of the highest percentages of uninsured drivers. Michigan ranked fifth in the country for percentage of uninsured drivers, with more than 1 in 5 motorists without a policy. Other Midwestern states with similar problems include Illinois, Indiana, Missouri and Ohio.
Each Midwest state is also plagued with issues that could deter individuals from signing up for insurance.
In Michigan, widespread insurance identification card fraud is a worrisome concern. The Michigan Department of State attempted to address the issue in July of 2013 by individually verifying the coverage of every single motorist looking to renew their vehicle registration. The state recorded a staggering overall fail rate of 16.1%, with some counties like Wayne above 25%.
The state later formed a task force with the objective to study the issue and recommend greater enforcement measures. Illinois, Minnesota, and Ohio have also made their own task forces to address the very same problems.
A six-month study by Minnesota’s Department of Public Safety came to the conclusion that proof of insurance requirements and the processes at vehicle registration have to be improved. The study also advised stiffer penalties for those convicted of driving without insurance or proof of insurance. The task force recommended implementing a public awareness program to educate drivers on the requirement for insurance.
Ohio’s Financial Responsibility Study Committee is assessing the problem there. The committee suggested doing away with the state’s Random Selection Program and replacing it with an electronic verification program for more reliable and accurate coverage information access. States that implemented similar programs reported reductions of uninsured motorists by as much as 20%.
Approximately 20% of all drivers in Tennessee are uninsured. Gov. Bill Haslam recently passed legislation that establishes an online electronic insurance verification program, similar to the previously mentioned system. The bill requires that the commissioner work with a third-party vendor to develop and implement such a verification program.
Iowa plans to follow suit by passing a similar law and creating its own verification system.
Indiana recently enacted “no pay, no play” laws that prevent uninsured drivers from suing for noneconomic damages (such as pain or suffering). Michigan and other states have passed similar laws.
