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Why Would Anyone Drive a Car Without Being Insured?
May 23, 2020
And, how can there still be people who drive without insurance?
After over 25 years as a licensed insurance agent, I think the reasons for a person driving uninsured fall into a few categories:
- Sticking it to the man: Many people who are averse to the government telling them what they must buy. Enough said?
- Poor financial management: It is incredible to me the number of people who do not open their mail. (Not our clients of course!) Or, those who do not have a method for managing and paying their bills.
- More pressing financial priorities (The majority of uninsured may fall into this category): When the decision to pay for car insurance versus those things that carry more importance, perceived urgency, or consequence (food, heat, debt, drugs) gets paid first.
The Insurance Information Institute website charts that the highest percentage of uninsured motorists are in Florida and Mississippi. The lowest number of uninsured motorists are in Maine and New York[1].
As a resident and insurance agent in New York, I can speak to the significant consequences one faces if your car is left uninsured.
Here’s what an uninsured driver has to deal with in New York if they let their car insurance lapse:[2]
- DMV penalties of $8 to $12 per day for each day insurance is not in effect on the vehicle.
- Suspension of vehicle registration.
- Suspension of driver’s license.
- Inability to sell or transfer the title for the car.
- An insurance lapse in New York comes with stiff fines, penalties, and consequences.
I know of instances where people’s cars have been towed straight away from the side of the road after a citation by police finding the driver does not have proper insurance. Recovery of their impounded vehicle requires all fines and penalties be satisfied.
It doesn’t take long for citizens to learn that paying your auto insurance premium is not something you want to mess with. As a result, New York has some of the highest auto insurance compliance in the United States.
It wouldn't be unreasonable to expect that uninsured drivers in Florida, Mississippi, New Mexico, Michigan, and Tennessee do not face the same kind of potential consequences.
This article may have been originally published at Quora.com.
To see Jeff's Quora.com profile click here.
Part 7 – Designing a Value-Driven Insurance Plan
Part 6 – Advice, Advocacy, and Answers
Part 5 – Can Your Company Deliver?
Part 4 – Custom Coverage = Real Protection
Part 3: Coverage Limits - "The Ceiling You Don't Want to Collapse"
Part 2 – The Risks of Chasing Cheap
Part 1: What Are You Really Paying For?
Insurance fraud is a significant problem, exceeding $300 billion annually, with the Property and Casualty sector contributing nearly $50 billion to that total.
Living in New York, you might have a stack of insurance documents—auto, homeowners, health, or life insurance policies—filed away somewhere. But how long should you keep those documents, and specifically, what papers should you hold on to?
The year 1962 was marked by historic events—from the Cuban Missile Crisis to the passing of Marilyn Monroe. But while the world focused on these headlines, Lee A. Ryan was working alongside his brothers on my grandparents' farm when an unexpected opportunity arose—an invitation to join the insurance business. With no prior experience, no clients, and limited resources, my dad took a leap of faith and partnered with Nationwide Insurance to start an agency from scratch. Operating out of his home on Karr Valley Road in Almond, NY, he built his business one relationship at a time (some of whom are still clients!), laying the foundation for what would become a lasting legacy.
