Outside view: Ensuring coverage
The following editorial appeared Monday in the Vancouver (Wash.) Columbian.
We concede that auto insurance is expensive. But accidents and accident-related health care bills can bankrupt families and increase the price of insurance for consumers who play by the rules. That’s why we support a bill in the Legislature that would require people to show proof of auto insurance when they renew their vehicle license each year.
It’s already against the law to drive uninsured. Requiring car owners to show that they carry auto liability insurance will cut down on incidents that leave people vulnerable and innocent parties picking up the tab.
House Bill 1046 was introduced by Rep. Dean Takko, D-Longview, and has the support of several lawmakers, including Vancouver Reps. Jim Dunn, a Republican, and Democrat Jim Moeller. HB 1046’s companion bill in the Senate is SB 5632.
The proposed law would be easy to implement. Insurance companies are required to send proof-of-insurance cards to policyholders. Policyholders would simply need to show those cards to the Washington State Department of Licensing when their vehicle license is up for renewal. A certificate of self-insurance or coverage under a liability bond would also be accepted. For those trying to trick the department with fraudulent documentation, the proposed law would make knowingly providing false information to the Department of Licensing a misdemeanor.
Of course, a lot of people live paycheck to paycheck, and insurance is a monthly bill that gets sacrificed in some households to keep groceries on the table and gas in the tank. But because of the burden uninsured motorists impose on others, the legislation is understandable and overdue.
Citizens concerned about the impact this could have on the poor should get connected with nonprofits offering vehicle assistance and public transportation vouchers. This is a more appropriate solution than government assistance or new mandates on insurance companies to provide discounts for the poor (which will only translate into higher costs for middle-income families who also struggle to make ends meet).
According to a June 28 Insurance Journal article, “Across the United States, if someone is injured in an auto accident, the chances are about one in seven that the at-fault driver is uninsured.” Takko’s legislation can help change that.