Nevada Arrests Reveal Large Numbers of Uninsured

03/25/2010

Speeding contributes to nearly one-third of fatal traffic accidents and about $27.7 billion in economic losses every year, according to the Department of Transportation.

With this in mind, the police department in Sparks, Nevada, launched a month-long campaign against those who drive over the speed limit, according to a recent report by the Insurance Journal. Their efforts have led to more than 600 citations and one arrest so far. 68 of the 633 total citations were issued for lack of proof of insurance.

Motorists in most states are required to purchase auto insurance or have sufficient assets to pay off any claims resulting from a car accident. Those that drive without insurance can cause premium prices to increase for other drivers by forcing them to pay claims for the uninsured.

Still, high unemployment rates and decreasing wages have caused many Americans to drop their coverage. While the number of uninsured drivers dropped between 2003 and 2007, from 14.9 to 13.8 percent, it is believed that the percentage of such drivers could increase to 16.1 in 2010, according to a study by the Insurance Research Council.

Many states have offered low-cost auto insurance policies for motorists to encourage higher coverage rates.

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