Thousands of motorists on the public roads of Denver, Colorado still do not have Denver auto insurance despite the state laws in mandating it. Authorities now question if the almost 40 years of mandating car insurance is really effective in making the laws any safer. Insurance industry experts say that insurance mandates in Denver failed to achieve the goal of lowering the number of car accidents and lowering the costs of car insurance.
According to University of Pennsylvania Professor Scott Harrington, the problem with mandates is that you can never expect for everyone to comply. He adds that while vehicle insurance mandate is almost present in every state, it does not guarantee excellent results if it is not rigorously and strictly enforceable.
CEO and president of the Property Casualty Insurers Association of America David Sampson said in an interview that the personal financial condition of the motorist and not the state laws best indicate whether or not the driver has the capacity to carry car insurance. According to Sampson, states that have a relatively higher poverty rate show a matching increase of uninsured drivers over the years. Sampson concludes that when motorists cannot afford to be insured, he will not bother to read insurance news or compare low cost insurance quotes, which is definitely the case that is currently going on in Denver.
According to a study conducted by a major insurance provider in Denver, requiring all drivers and car owners to buy car insurance can help extend the responsibility for medical and car repair costs. With planned financial support to help the poor purchase policies, authorities will have a better chance of convincing thousands of uninsured driving to purchase coverage plans.
With auto insurance mandates being enforced in almost states, Denver still has hopes of solving its problems regarding uninsured motorists. Even President Obama is supportive of requiring everyone to get vehicle insurance. The President said in his interview in the “This Week” show which was aired on ABC last September that he people will no longer have to carry the burden of others, as everyone in the US has to get car insurance.
At present, there are 48 states that mandate motorists to carry liability insurance. Wisconsin’s state law mandate is set to begin next summer. By then, the only state that will be left where motorists can legally drive around without having car insurance will be New Hampshire. Of course, these states require motorists to show proof that they the financial capacity to pay for small levels of damage.