Recent data from research are suggesting that more Americans are resorting to potentially dangerous measures to cut back on expenses. In the latest surveys conducted by car insurance analysts, a large percentage of motorists have expressed the possibility of increasing their deductibles to save on insurance costs. Some respondents have even expressed willingness to drop their coverage entirely.
Officials from Oklahoma estimate that some 20 percent of vehicles on the state’s roads and highways do not have updated insurance. Experts say that uninsured drivers are more likely to be involved in a car accident that insured motorists. The presence of underinsured or uninsured drivers also increases the risk for other motorists.
As a result, insurance costs have risen significantly for many Americans. Drivers are also purchasing added options and coverage to protect themselves and their families from uninsured drivers and potential liability issues. While higher deductibles may mean lower insurance premiums, experts warn against dropping certain coverage like liability options. If a policyholder is involved in a car accident with an uninsured driver, then the motorist might have to shoulder any medical bills arising from the crash.
In 2006, the state of Oklahoma issued a new law mandating the creation of a new system to monitor cars without insurance. State officials say that the system has been in testing since October of last year and has just recently became fully operational.
Paula Ross, spokeswoman for Oklahoma Tax Commission, said that the new system links law enforcers and tax agents by providing up to date information on insurance tags. The state requires vehicles to have proof of insurance in the form of car tags. Ross says that many motorists purchase insurance coverage to avail of the tags, only to discard them after receiving the secure verification form.
To prevent this, Ross says that the state government has opted for the creation of a unified system for identifying uninsured vehicles. The Oklahoma Department of Public Safety says that the department has been using the system since May 25. The said database is accessible to all law enforcement agencies.
Ross explains that the system works by cross-checking a vehicle’s tag number with records provided by insurance companies. Motorists have to present their tags to police officers and state troopers. Law enforcers can then enter the tag number into the database and cross-reference it with existing data.
State officials hail the system, saying that the verification system is an excellent tool for detecting and discouraging uninsured drivers.