Uninsured Motorists May Adversely Affect Texas Auto Insurance Rates

Traffic on roadUninsured motorists getting behind the wheel in Texas may be driving up premiums for those who do pay for coverage, reports the Valley Morning Star.

Nearly a third of registered vehicles in Cameron County, Texas, are uninsured, according to a study conducted by TexasSure Vehicle Insurance Verification.

The TexasSure project, launched in 2008, was created at the behest of lawmakers wanting to crack down on the epidemic of Texans driving without at least basic liability insurance coverage. The latest report from TexasSure was released last month and indicated that more than 3.7 million out of 17.2 million registered autos in the state are not insured; that means more than 20 percent of registered autos in the Lone Star State remain uninsured.

The implications that arise from not having auto insurance can be vast. However, the exact financial impact on motorists who do have coverage is unclear.

“It’s hard to put an exact cost for how much uninsured drivers cost the insured drivers,” Texas Department of Insurance spokesperson Jerry Hagins told the Valley Morning Star. “What we have found is the extra coverage for covering uninsured and under-insured drivers is just under $1 billion each year.”

Drivers without auto insurance in Texas may face fines from the Texas Department of Public Safety.

Drivers believing that they will not get into an accident and that they therefore do not need auto insurance may want to look at the auto accident statistics. Data compiled by the U.S. Census Bureau revealed that there were 10.6 million auto accidents in 2007 alone.

It’s unsafe for motorists to drive without having adequate auto insurance. The coverage can help motorists pay for damages done in an accident.

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

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