“Ohio's auto-insurance tests unfair, lawmaker says” |
| Ohio's auto-insurance tests unfair, lawmaker says Posted: 18 Jan 2011 08:56 PM PST Some lawmakers are ready to put an end to those "annoying" letters the state sends out each week asking random Ohioans to verify they are carrying vehicle insurance. But without a replacement ready to go, Rep. Jay Hottinger, R-Newark, chairman of the House Insurance Committee, said he is not ready to do away with a program that busts about 500 uninsured Ohio drivers every week. The state's insurance-verification program sends about 5,400 letters each week to random Ohio drivers asking them to mail back proof of vehicle insurance. Those who do not have insurance or fail to respond after 90 days get their driver's licenses suspended for 90 days and must pay a $125 reinstatement fee plus court costs. House Bill 4 would eliminate the verification program, which costs the state about $500,000 a year. "There are some unfair things that are happening to people under this system," Rep. Matt Huffman, R-Lima, the bill's sponsor, told the panel today. Huffman said he heard from a woman whose son was serving in the military when he got a letter, didn't return it, and had his license suspended. He said there are other complaints from people who live outside Ohio for a time and end up with suspensions. "There are a variety of ways to do this without sending out these letters and in some instances playing gotcha," Huffman said, noting the Bureau of Motor Vehicles could require drivers to show proof of insurance when a license or registration is renewed. But Rep. John Patrick Carney, D-Clintonville, said if people know they need insurance before renewing their licenses, many could simply buy a 30-day policy. "If I get a letter in the mail, I can't then go out and purchase insurance and avoid a violation. They caught me red-handed." Huffman questioned whether the program reduced the number of uninsured drivers in Ohio, because so few people are aware that the 12-year-old verification program exists. Drivers involved in accidents or pulled over for traffic violations would still have to show proof of insurance. Eliminating the program without a suitable replacement would increase the number of uninsured drivers on Ohio roads, said Dean Fadel of the Ohio Insurance Institute. "There is no foolproof way of enforcing the law, but the most effective way, and every state shows this, is to catch people in the act," he said. "That is what our law is designed to do." If the number of uninsured drivers rises, rates paid by insured drivers will increase, Fadel said. Joe Thesing of the National Association of Insurance Companies said that while there is no silver bullet, Ohio's system of catching uninsured drivers is as good as any out there. He said the hope is that all states eventually will move toward a database system that allows for quick tracking. This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
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