New Legislation Just Is Not Enough


If you ever watch TV you know that there is a push for low cost car insurance coming across the screen. The advertising campaign is driven toward those who are having trouble affording coverage and only want enough to ensure that they are legal. While this is a better idea than going without, there are some issues that have caught the attention of a few state senators.

Most states do not mandate a high enough legal minimum. Thus, accident costs are not being covered even when the driver has the legal state minimum. In most cases, this ends up being reflected on the state’s bill as hospitals have to write off more unpaid invoices. When hospitals are unable to get paid, the cost of health care rises. Government subsidizing only drives up taxes. This is why some state senators are asking to change the amount of their state’s liability coverage.

The overall cost continues to take a toll on public funds and the industry is under scrutiny. Should coverage requirements become more intensive the average consumer will find that their premiums are increasing. What the advertisements do not explain is that the low cost coverage usually doesn’t offer enough coverage to pay for a minor accident, let alone a serious one.

This puts consumers in a vulnerable position. With concerns over health care rising, many people are afraid that they are not going to be able to afford any insurance at all. In fact, between the increase in energy costs, fuel prices for vehicles, and premium hikes many consumers are just barely scraping by.

Yet, a single accident can create a mountain of debt for the under insured. Many state senators do agree that vehicle ownership is a privilege and not a right, but once you take away a person’s ability to drive legally their security of employment is threatened.

The advertising that pushes state minimum coverage only reaches the lower socioeconomic groups as those in the upper classes already tend to have full coverage. This creates the next Catch 22 as driving up premium prices also impacts the lower income households.

In order to be protected in the event of an accident state minimums must come up by several thousand dollars. Otherwise, the cycle will just continue to repeat. Legislators need to take action to help protect the consumer as they push through greater minimums. Many residents of the most affected states believe that a reduction in other household expenses, such as heating costs, should be forced to become lower.

Be Sociable, Share!
car and auto insurance quote