Insurance is Mandatory, but is it's cost realistic for most consumers?

If you are paying uninsured motorist insurance, then the fact that so many motorists drive without insurance IS effecting how much you pay for automobile insurance. Ever stop to wonder why people drive without insurance?

• Why are twenty-five percent of South Carolina drivers driving without insurance? That is the question that needs to be answered. Why is it that twenty-five percent of South Carolina drivers knowingly drive without the required insurances? Primarily because they cannot afford it, that's why. And why can't they afford insurance? There are a number of factors. Some can't afford insurance because their driving record has ratcheted them into a high-risk rate. Others can't afford it because their age or sex automatically places them into a high-risk bracket even though they may have never received even a parking ticket.
  
  Others can't afford it because of the type of vehicle they choose to drive or in some instances need to drive. Others can't afford it because the South Carolina Department of Insurance regulates the free market and all competition so that they can control insurance rates. Consequently the free market doesn't really exist because the regulatory body sets standards that ultimately prohibit smaller companies from competing for the consumer's business. Whether this consequence is the result of the best of intentions back-firing or of corruption remains to be determined. But lack of competition can drive insurance rates so high that many people simply cannot afford to be insured, even if they really want to be. - (January 6, 2005) By Ed Haas; editor and columnist for the Muckraker Report
• Why You Need Uninsured/Underinsured Motorist Coverage From Insurance.com - Insurance companies just want to make you pay for more insurance instead of addressing the real issues, their rates are disproportionally high for poorer, ecomonically disadvantaged drivers - and this does NOT mean those drives are BAD drivers.
• THE CARNAGE OF UNINSURED MOTORISTS - (April 28, 2003 ) By Devvy Kidd, NewsWithViews.com
• Auto Insurance Rates in New York too High Better Regulation, Change in No-Fault Law Needed Consumer Federation of America - November 12, 2003
• Mich. DOI Study Finds Competition Doesn't Equal Affordability; Insurers Say Losses Driving Rates Michigan Department of Insurance, March 24, 2005
• Oakland Dems Introduce Legislation to Roll Back Insurance Rates Legislation protects consumers and forces accountability - LANSING Thursday, January 19, 2006 – Members of the House and Senate Democratic Caucuses today introduced their legislative package to address the rising cost of insurance in Michigan. The multi-part package will lower the cost of insurance, strengthen consumer protections and improve industry accountability. State Representative Paul Condino (D-Southfield) will introduce a bill requiring insurance companies to roll back rates by 20 percent. “Affordable, reliable insurance is a critical part of our families’ financial security,” said Governor Jennifer M. Granholm. “I am hopeful that legislative leaders will schedule quick action on this important package.”
  
  The Democratic package consists of 20 initiatives that will strengthen regulations to bring fair, affordable and accessible auto and homeowners’ insurance to Michigan citizens. The package addresses three primary areas of concern: rates, consumer protection and industry accountability."Insurance rates in Michigan are unaffordable," Condino said. "Michigan residents deserve better. This package will reduce insurance rates and ensure that consumers have a say in setting rates." A recent report by the National Association of Insurance Commissioners on the average cost of auto insurance rates found that rates in Michigan are the tenth highest in the nation and the highest in the Midwest. Among other things, the Democratic reform package will:
  
  • Provide stronger tools to the Insurance Commissioner in determining where rates are excessive and ordering refunds where found;
  • Provide flexibility in setting base rates to provide more affordably priced insurance;
  • Establish an Office of Insurance Ratepayer Advocate to represent and protect the interests of consumers; and
  • Prohibit insurance companies from using an individual’s credit history or credit score for determining insurance rates.