New Law Will Clamp down on Uninsured Motorists

This article from Wave 3 Charla Young
New Law Will Clamp Down on Uninsured Motorists

"Mary Shake still replays the July automobile crash she was involved in over and over in her mind. "I had been to a store and I needed to go to the Outer Loop," she recalled.

"I had traveled a short distance and I looked in my rearview mirror as I do quite often and I said, oh my goodness! she is in my car.'"

Mary never saw the woman responsible for the accident. But she does remember the police officer asking for insurance cards.

"She gave them a card that stated she got insurance in May," Mary said.

It was a month later when Mary got the complete story.

"It's very plain that she did not have the insurance," Mary said, "and she outright lied to the officer about this at the time."

So Mary's insurance company was forced to pick up the bill.

This problem is not uncommon. Twelve percent of all Kentucky drivers are uninsured even though liability insurance is mandatory.

So how could it happen?

Once some drivers get their proof of insurance cards, they immediately drop the policy or stop making payments. But the card still shows they're covered for six months.

Glenn Jennings with Kentucky's Office of Insurance admits that such people become "a burden on everyone."

But House Bill 29, which passed during the last session, aims to close the gap on the insurance card loophole.

"Effective January 1st, all insurers in the state of Kentucky will submit a formatted data file to the Department of Transportation," Jennings says.

That information will be updated every 15 days, and will soon be accessible in all state trooper cruisers for instant verification.

If drivers don't have insurance, Jennings says "they will be penalized fines involved won't be able to register vehicle."

And if insurers don't update the files properly, they could lose their license to do business.

Mary believes such legislation is a step in the right direction. "I guess this is what we need."

The new legislation will take effect January 1st. It will be a collaborative effort between the Office of Insurance, the Department of Transportation and the county clerk's office.

The legislation and monitoring system comes with a big price tag, but experts say the price of uninsured drivers on Kentucky's roadways far outweighs this investment.""

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