Mandate Auto Ins vs Health Ins

[AZ-Tax]

For you that are familiar with auto insurance, if you go w/o auto ins for certain period of time, you will need to file an SR-22 (financial responsibility) form to obtain new auto ins or reinstated your current auto ins and 4 yrs back when I launched my P&C agency, very few insurer's accepted applicants w/SR22’s and those insurer's that did, their premiums were quite a bit higher. One would think that it itself that would entice vehicle owners to purchase and continue their auto ins. Well that does not seem to be the case anymore. More insurers are accepting SR22s' and the premium difference between an insurer that accepts a SR22 and those insurer's that don’t are nearly neck and neck but I noticed an overall increase in auto premiums. Does that mean those uninsured’s who were liable for property damage caused by their vehicle contributed to AZ overall increase in auto premiums, possibly. So it’s a matter of opinion if the free market worked or not and yes, at least in AZ, auto insurer's from all around the U.S. complete in AZ. Now AZ is looking at ways to get tougher on uninsured vehicle owners. One idea was assessing an additional penalty/tax at registration renewal for all those uninsured vehicle owners that received a SR22 in the prior renewal year.

Sound familiar?

[ChEAr$]

For you that are familiar with auto insurance, if you go w/o auto ins for certain period of time, you will need to file an SR-22 (financial responsibility) form to obtain new auto ins or reinstated your current auto ins and 4 yrs back when I launched my P&C agency, very few insurer's accepted applicants w/SR22’s and those insurer's that did, their premiums were quite a bit higher. One would think that it itself that would entice vehicle owners to purchase and continue their auto ins. Well that does not seem to be the case anymore. More insurers are accepting SR22s' and the premium difference between an insurer that accepts a SR22 and those insurer's that don’t are nearly neck and neck but I noticed an overall increase in auto premiums. Does that mean those uninsured’s who were liable for property damage caused by their vehicle contributed to AZ overall increase in auto premiums, possibly. So it’s a matter of opinion if the free market worked or not and yes, at least in AZ, auto insurer's from all around the U.S. complete in AZ. Now AZ is looking at ways to get tougher on uninsured vehicle owners. One idea was assessing an additional penalty/tax at registration renewal for all those uninsured vehicle owners that received a SR22 in the prior renewal year.

Sound familiar?

Nope. Your example of a state mandate requiring insurance in order to own and drive a car is not a tax. And the Supremes have ruled that the imposition of a monetary amount on one's tax return if he has no health insurance is a tax.

[thomtax]

Yes - However the big difference is that it is at the state level, not at the federal level. And as we all know, different parts of the country vary so wildly that one size fits all is not a good answer.

LT

[Jiggers]

And here in Texas, the only penalty for not having vehicle insurance is a fine by the state, if and only if you get caught without the insurance.

Such as being stopped for a traffic violation. You will receive a ticket for no insurance.

And if you are involved in an accident. You will also receive a ticket for no insurance, even if the accident is not your fault.

Yes, you do have to show insurance proof to get your annual license sticker or to get the annual vehicle inspection. But you can put a down payment on the policy, get your license sticker or inspection, and get your insurance canceled by not making any further payments.

[MLINDER42]

Md No Car Insurance

The state is notified when your insurance lapses and there is a fine for every day you do not have insurance and have not turned in license plates.I have had clients owe thousands of dollars taken from tax refund.You can not renew drivers license if money owed.The state is very tough on driving with out insurance.

[Jiggers]

The state is notified when your insurance lapses and there is a fine for every day you do not have insurance and have not turned in license plates.I have had clients owe thousands of dollars taken from tax refund.You can not renew drivers license if money owed.The state is very tough on driving with out insurance.

Wish Texas would have this attitude.

But with so many minorities (aka illegals) driving, the politicians wouldn't have it.

We do have "No Fault" insurance for those of us that have insurance to cover the other party's damages. The only problem with that is we still have to pay the deductible. Been there, done that. When the little young lady, with no license, that ran the light and damaged my vehicle didn't have insurance, I told the officer I wanted the vehicle impounded because she is still responsible for the damages done to my vehicle, or so we were told by the legislature. He told me that he didn't see the accident and couldn't do that. We had about a dozen witnesses who saw the accident and were willing to testify as such, but that didn't help.

I asked him what the judge was going to do to her and he said that they were going to take away the license that she didn't have.

[AZ-Tax]

Is it working in MD?

The state is notified when your insurance lapses and there is a fine for every day you do not have insurance and have not turned in license plates.I have had clients owe thousands of dollars taken from tax refund.You can not renew drivers license if money owed.The state is very tough on driving with out insurance.

Actually I wish the law would go further and immediately have the vehicle either towed or have a wheel boot placed on vehicle. This would decrease the # of uninsured’s, Turn the "wheel booting" and “towing” over to a private businesses but first qualifier for the private business to compete for a this business is NO money donated or will be donated to any political candidates including PAC's. These private businesses grow by hiring people, purchasing assets like vehicles etc. Tow truck industry would need to purchase more tow trucks and hire more drivers not to mention hire more factory workers to build the additional vehicles and tow trucks. Jobs have now been created by just enforcing a law and since private business is involved, very little if any cost to the taxpayer. And why not make it a Federal law due to State Govt's dragging their feet for years to put in place effective ways of enforcing the "mandate to have auto ins".

I like to call it a my "Financial Responsibility Act" (FRA)

Then I can have a have a little more peace of mind when I am driving in other states whether or not the vehicle next to me has auto insurance.

[MLINDER42]

Md No Insurance

In MD if you are stopped by the police and the motor vehicle department says you have no insurance the car is impounded.

[ttbtaxes]

There is no comparison between auto insurance required by states and the ObamaTax required by Obama. The owner had to affirmatively do something to incur the auto insurance .... he or she bought a car.

ObamaTax is like mandating someone in Manhattan, who does not own a car, nor even have a license, to buy auto insurance.

[WhiteOleander]

You are only required by law to pay for liability auto ins. so the other guy can be made whole from your actions. If you choose not to carry ins to pay for your own car repairs you do not have to.
Obamacare is like forcing everyone to carry collision ins whether they want to or not.