Car Insurers Want Mandatory Laws Gone?

Most states now have mandatory car insurance laws. This can be a gift and a curse to drivers. Many car insurance companies actually dislike the idea of mandatory car insurance laws. It would stand to reason why they would hate the idea because mandating a product boosts their profit margins.
Most car insurance industry experts think that these laws are pretty ineffective at actually making it so that uninsured drivers are not operating vehicles. The laws are not enforced well enough in most states because of the fact that many police departments do not have the man power to go after those that are breaking car insurance laws. There is not a system in place where people are thoroughly punished for disobeying the laws. They just pay their fines, get insurance coverage and most then eventually drop their policies and the whole cycle repeats itself over and over again.
Most people go undetected until they either get pulled over for a traffic offense or become involved in a car accident. One downfall of the mandatory car insurance laws are that car insurance companies are told to call the Department of Motor Vehicles when someone cancels their insurance policy or does not renew them. This can lead to issues and charges for motor vehicle operators. Often, many drivers cancel their policies because they do not want to pay for car insurance because they find it meaningless until they actually need it.
It is very unlikely that mandatory car insurance laws will ever disappear.  New Hampshire is the only state that has not implemented a mandatory car insurance law thus far. State politicians do not like how expensive it is to have uninsured drivers on the road causing car accidents. They want to hold drivers accountable for their actions while also protecting insured drivers who do the right thing.
In most states, when a person is now involved in an accident, they have to have their car insurance agent provide proof that they do in fact have insurance coverage on their vehicle. Car insurance companies want the laws to go so that people are free to buy coverage if they choose to.
Right now, the unemployment rate is more than nine percent. This has increased the number of uninsured motorists by more than three quarters of a percent. With so many people being out of work, getting rid of mandatory car insurance laws would benefit the car insurance industry.
The question here becomes a moral one. Can people be forced to buy anything? In New Mexico, almost thirty percent of their licensed drivers lack a car insurance policy. This means that in thirty percent of accidents, these drivers will financially impact the lives of the other drivers that they hit. The question then becomes do drivers deserve this consumer protection? Consumers should be protected from laws that do not benefit them.
However, what is good for everyone on the road is to be able to be compensated if they are involved in a car accident. Having to fight an uninsured driver in the court system takes a lot of time, money, and patience which many people do not have.
Now, many states are passing laws that would increase mandatory liability car insurance coverage laws. This has increased car insurance premiums for many drivers. When this happens, car insurers actually see their number of policy holders drop because people then decide to terminate their coverage. Something needs to be done so that drivers are protected while car insurance companies are able to keep their monthly premiums stable so that more people can be able to afford the premiums.
Source: MSN Money