Many Motorists Still Uninsured in Colorado in Spite of Law


Despite rigid laws already being implemented, Colorado still ranks among states with the highest number of uninsured motorists. According to a data released by the Insurance Research Council (IRC), the probability of being caught in a vehicular accident with an uninsured driver in Colorado is as high as 15%. This pales in comparison to only 10% of the over-all probability that a motorist might figure in a car mishap.

Many Motorists Still Uninsured in Colorado in Spite of LawIRC is an independent, non-profit research organization whose aim is to provide timely data and information which affects insurers and consumers. It also performs analysis on data to study the statistical experience of insurers “to reveal patterns in insurance claims.” It revealed that in 2009, Colorado ranked 16th in terms of having uninsured drivers plying the streets. Maine, which has the lowest rate, stands at only 5%.

Currently, laws at Colorado provide penalties for uninsured driving. For a first offense, a fine of $500 is imposed with a chance of losing their license. This fine, however, amounts to about $1,000 for a second offense and includes up to 40 hours of community service.

IRC indicated that law-abiding motorists have to shoulder the costs of having uninsured drivers. Since an uninsured motorist would usually declare that they have no means of payment, litigation costs which proved futile are shouldered by those who have coverage. They must also pay for their own deductible which could amount to more than a thousand dollars. In addition, as much as 25% of the costs of policy are being passed to consumers by insurance companies because of this dilemma.

Insurance companies lament that those who have no coverage cannot make good claims held against them usually because of financial constraints. If a case had been filed to recover money, this would entail litigation costs, time and effort. If ever money is awarded, it falls short of the original claim and takes years to collect. Ordinarily, average insurance payment on an accident is more or less $11,000.

Most people claim that this recent economic recession is the main cause why there are growing numbers of uninsured drivers. IRC pointed out that the rate of increase for those who are uninsured is almost the same as that of the rate of unemployment. Most companies and law enforcement agencies reasoned that with the loss of jobs, consumers are forced to tighten their spending, usually putting auto insurance at the foot of their priorities.

However, as industry insiders would say, having coverage saves a motorist a lot of trouble. For one, it is the law in Colorado. Secondly, burdens that goes with having to pay for a vehicular accident could have a lasting effect financially.