Reforms yet to pay off

e-mail this story discuss this issue in our forums

decreased uninsured drivers. More

enforcement, lower costs key.

More than four years removed from reforms that promised fewer uninsured motorists, an estimated one-fourth of drivers still take the wheel without coverage. Obviously, our new insurance law has done too little to encourage more drivers to seek coverage.

Efforts to step up enforcement to catch uninsured drivers have been positive and should continue. The Legislature can make enforcement even more effective by devoting more funding to data sharing between the insurance industry, police agencies and the state Department of Motor Vehicles. More efficient information sharing will help to identify uninsured motorists more easily.

North Carolina, which has one of the highest rates of compliance in the country, is a model of cooperation between insurance companies, the DMV and law enforcement. The key to North Carolina's success is simple: determined follow-up. But threats and deterrents alone won't work. There must be incentive, too.

That brings up the issue of cost. A good start for lawmakers would be to instruct the state Insurance Department to study whether there are enough companies in this state offering a bare-bones, low-cost coverage.

When South Carolina joined much of the nation in giving insurance companies the authority to pick and choose their customers, many drivers saved money because they no longer had to subsidize the cost to insure bad drivers.

Other drivers, however, suddenly found their rates increasing. They are high-risk drivers as defined by the risk assessment models insurance companies depend upon to set rates. Many live on the economic margins. That, unfortunately, defines more South Carolinians today than it did in 1999 when the law changed.

With rates no longer subsidized, it's a good bet that cost is an impediment. Therefore, this state should review its minimum coverage mandates.

Another complicating factor is the rise of illegal immigration here. Most illegal immigrants are uninsured, partly because they cannot obtain driver's licenses.

Some states have responded to this issue by licensing illegal residents and holding them to the same laws as other drivers. This state has gone the opposite way in keeping driver's licenses out of the hands of illegal residents. At some point, the state must either fund the enforcement costs to get those uninsured immigrants off the road or put them in the system so they can be tested and insured.

The depth of the uninsured motorist problem paints a bleak picture for anyone involved in an accident with an uninsured driver. Medical bills and car repairs sometime go unpaid as wildly inefficient uninsured motorist coverage is left to pick up the pieces.

Uninsured motorists affect all drivers by keeping rates high for everyone. A good investment for the Legislature right now is in enforcement and information sharing. And lawmakers must also decide on how best to deal with the uninsured motorist problem among illegal immigrants.