In Texas, a statewide database program was launched last fall to combat its pretty high rate of uninsured drivers—20%, or as many as 4 million vehicles.
Penalties for driving car without insurance vary by state. It may run from small fines to criminal charges. These include fines as high as $5,000 (for a subsequent offense), license or registration suspension or revocation, jail time, confiscation of license plates and impounding of vehicles, according to the Insurance Information Institute.
Moreover, one is required to file SR-22 form, a form that proves that you have certain types of insurance. I f you are caught driving without insurance in New York and in California, your registration is suspended. Also, driving for 90 days without insurance will suspend your license.
There are also instances that some caught uninsured drivers try to game the system; they show up in court with fake insurances, ID cards, declaring that they just forgot to keep the cards in their vehicles. With this, to ensure that the law is enforced some proposed to put verification systems in courts.
Another tactic, according to Alex Hageli, director of personal lines for the Property casualty Insurers Association of America, that some will get an insurance the same day he is caught then immediately cancel the coverage after and when the card expires that person will repeat the process.
In California, Mike Morando, a spokesperson for the Department of Motor Vehicles said that to help cut the number of uninsured-motorist; state officials should plan a voluntary Web-services program. If it is voluntary, most probably many carriers and customers will participate. It will give the people the chance to update their coverage status.
In New York, according to Insurance Research Council it has 5% uninsured-motorist still needs an immediate action. Ken brown, New York DMV spokesperson credits a program called the Insurance Information Enforcement System, which has been in effect since 2002. It electronically connects regulators with carriers across the state. Carriers are obligated to subscribe, and the moment a customer adds or deletes coverage, the state is notified. If the state cannot confirm that a new insurance company has picked up coverage for a dropped vehicle, the system automatically generates a letter to the registered owner. Brown declared that the New York state has a system that clearly validates that an individual does or does not have insurance.
Laws on vehicle insurances are there, the only problem encountered by most states are enforcing and following it.