Full Implementation of 2009 Montana Auto Insurance Law on August 1st
August 1st will be an important day for Montana drivers, as a law that was passed in 2009 will take full effect. The State is following what many other states are in the process of implementing, an online verification system. What does this mean for you, the driver? All that this means is that law enforcement officials will be better able to ensure that people are carrying the minimum state requirements for liability auto insurance.
According to the Missoulian, law enforcement officials need only enter a license plate or a driver’s name into their computer, and the online verification system will let them know if that particular vehicle is insured properly.
This system does come at a price, however. It is estimated to cost around $540,000, which equates to about to an increase of $1.80 in license plate fees per vehicle. The issue of uninsured drivers is very real, and states are beginning to crack down on those drivers that choose to ignore it.
Uninsured Drivers & Insurance Premiums
The Missoulian says, “Officials estimate one out of eight vehicles licensed in Montana is uninsured in violation of state law. That would mean there are 162,000 uninsured vehicles out of the more than 1.3 million licensed passenger vehicles, heavy trucks and motor homes, according to the state Justice Department.”
What’s the significance of this? The obvious repercussion of the many uninsured drivers out there is a severe lack of responsibility. If you’re hit by someone that doesn’t have liability insurance, all of your medical bills and car damage will likely come out of pocket. This is why uninsured and underinsured motorist coverage is so prevalent.
Another issue that dovetails with the above is that the more uninsured drivers that are out there, the more costly it will likely be to get uninsured motorist coverage. Insurance is a business with its foundations set in risk management. The more uninsured drivers in your area, the more costly your premiums are going to be if you opt for this form of coverage.
This new system will help Highway Patrol troopers and other law enforcement officials enforce the already mandatory minimum levels of liability coverage However, drivers won’t simply be pulled over if they are determined to not liability insurance. The stipulation states that drivers would need to be stopped for some other traffic infraction in order for the police officers to, then, go through their laptops and verify insurance coverage.
If the law is successful, it will be less risky for insurance companies to insure Montana drivers. The good news is that this should help bring down insurance costs.
Now is the perfect time to get insurance quotes, and check in on your state’s laws and minimum liability insurance requirements.
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