Why You Need Uninsured Motorist Coverage

Just about all the western states require drivers to have auto liability insurance before they can legally drive a car. In nearby Reno, auto insurance holders should always insist on higher than minimum levels. (Liability insurance pays the other driver’s medical, car repair and other costs when the policyholder is at fault in an auto accident.) State laws set the minimum amounts of insurance or other financial security that drivers must pay for the harm caused by their negligence if an accident occurs.

Laws in most states have proven ineffective in reducing the number of drivers who are uninsured. There are many reasons for this. Some drivers can’t afford insurance and some drivers with surcharges for accidents or serious traffic violations don’t want to pay the high premiums that result from a poor driving record. With the estimated percentage of uninsured drivers in the Nevada and California close to 17 percent, it is costly to track down violators of compulsory insurance laws. And unless the odds of getting caught are high and the penalties severe, drivers will continue to flout the law.

Although many states have discussed creating online auto insurance verification systems to identify uninsured motorists, according to the Property Casualty Insurers Association of America, only four states have programs operating. These systems require insurers to maintain up-to-date databases of insured motorists that can be accessed via the Internet by law enforcement officers instantly when motorists are stopped for traffic infractions.