Lowering the Cost of Car Accidents by Keeping Car insurance Costs Down

I just added a news article to my website reporting a fear by many that with the decline in the economy people will either lower their car insurance coverage or even drop it.  This trend could cause some very expensive accidents.  The Property Casuality Insurers Association of America has offered some solutions but I have some ideas based on my years of experience in handling accident cases and dealing with insurance companies.

I do not believe an uninsured driver should be penalized for not maintaining insurance if the accident wasn’t their fault. They are injured through no fault of their own and the injury could be catastrophic. I believe this is an attempt by the insurance industry to decrease the number of legitimate claims that they will have to pay as more and more divers are on the road without adequate coverage, The at-fault responsible party should have to pay regardless of the insurance. This type of status disqualification would be a very dangerous precedent to set and a windfall for the already fat insurance industry. Under Kentucky law the state court of appeals has already stated that an uninsured motorist can not collect from the at-fault driver his first $10,000.00 in medical bills. He has to pay this first $10,000.00 no matter what. Although I don’t agree with this law, I believe this is more than enough penalty for an uninsured motorist that is in an automobile accident through no fault of their own.

Based on my experience I do not believe that increasing the penalties for driving without insurance will have any affect on lowering the number of drivers on the road without insurance. The penalties in Kentucky are:

•    A fine from a minimum of five hundred dollars ($500.00) up to a maximum of one thousand dollars ($1,000.00) and /or up to 90 days in jail.
•    Have the registration of the motor vehicle revoked and the license plates of the vehicle suspended for one (1) year or until such time as proof of insurance on the vehicle is obtained.

An increase in these jail sentences and fines would not make the majority of people purchase insurance. One does not think of the consequences when deciding between car insurance and bread on the table. Enforcement of the current laws would have some affect. I believe a better plan would be to put the burden on the insurance industry.  If the insurance company would notify the State if insurance was not paid so that the state could send a letter stating that the person’s driving privileges would be suspended unless valid proof of insurance is provide with 7 days, I believe our numbers of uninsured drivers would decrease.

If you would like more information on buying car insurance or on Louisville, Kentucky Accident attorney go to www.mikeschaferlaw.com.