auto insurance kentucky
New law expected to better track uninsured drivers
from Central Kentucky News. Here is a link to the article : Central Kentucky News
A law passed by the General Assembly in 2004 requiring insurance companies to supply lists to the state of all insured drivers and policy cancellations is expected to be fully operational early next year.
State Rep. Russ Mobley said lawmakers began looking into the problem after an alarming trend was brought to their attention in which people buy an insurance policy simply to get their vehicle licensed.
"After a week, they would cancel it and go six months to a year without insurance," Mobley said.
According to the Kentucky Department of Insurance, one out of every eight drivers in Kentucky is uninsured.
This year, Campbellsville Police officers have written 241 citations for motorists without insurance. Last year, officers wrote 554. In 2003, 243 citations were written.
According to Deputy Mike Cassell, the Taylor County Sheriff's Department doesn't keep track of its totals.
Those who don't have insurance could be fined as much as $1,000 and sentenced to 90 days in jail for a first offense. With a second or subsequent offense within a five-year period, drivers could have their license revoked, be fined $2,500 and be sentenced to 180 days in jail.
Though state law required drivers to be insured, Scott Jessie of Jessie Insurance Agency said some have discovered a loophole in the system.
"They don't see a need for insurance," he said. "[This law] is taking steps in the right direction."
Jessie Insurance Agency started its own policy which helps cut down on the number of people simply buying a policy to get their vehicle licensed.
"Normally, we do not quote over the phone if you do not have insurance," Jessie said. "It has cut down on that type of clientele."
Kathy Lawson, owner and insurance agent at Burkholder Co., suspects people do this because they can't afford to pay insurance premiums. These people are usually renters, she said, and have little to lose in the event they are sued as the result of a car crash.
According to Lawson, the problem is widespread.
"Most of the insurance companies require them to pay a down payment - usually one month," Lawson said. "The following month, when their first payment is due and they don't pay, the policy gets canceled.
"The problem is, it's not enforced. They keep the card until it is time to license their vehicle again."
When someone buys an insurance policy, within a few days they receive a temporary insurance card, usually good for six months, Lawson said. Though the policy is canceled when they fail to make a payment, Lawson suspects many people continue to use the temporary card as if they are still insured. Because the expiration date is still good, officers would have no way of knowing the policy has been canceled unless they call it in.
Campbellsville Police Chief Dennis Benningfield said the only situation in which officers always check for a valid insurance policy is when they're investigating a collision. During routine traffic stops, while they always ask for proof of insurance, officers don't always check to see if the policy is still active.
The new uninsured drivers' law will change that.
State police and other law enforcement agencies will have access to a database, which will be updated monthly, allowing them to catch uninsured drivers.
The database will also allow state officials to know who lacks insurance and send them notices to renew their insurance.
"House Bill 29 required that we send out the notices on a monthly basis. We won't be waiting for an accident to happen before we notify them," stated Willie Payton, assistant director of Motor Vehicle Licensing.
Mobley said the penalties are still being ironed out.
Benningfield said he's happy to see lawmakers addressing the problem.
"We need to know this information," Benningfield said. "We've got people riding up and down the roads without insurance."
If an uninsured driver causes a car crash, a victim could get saddled with his or her own bill, according to Lawson.
"If you only have liability and they have no insurance, you're out of luck."
In those cases, someone would likely end up filing a claim through their own insurance policy, Lawson said, although they were not at fault.
"It makes it hard on those of us who are insured."
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