VA car insurance/license requirements - why not here?

**detlump** · February-17-12, 11:06 PM

When I moved to VA, I was surprised to learn that there was a plan for uninsured motorists

http://www.dmv.state.va.us/webdoc/ci.../insurance.asp

Additionally, insurance companies are electronically connected to the DMV, so people can't buy insurance for the day to renew their licenses. Really, in 2012, do we need to carry little pieces of paper?

http://www.dmv.state.va.us/webdoc/co...ingmethods.asp

The way I understood it, if you cancelled insurance without a new policy your license was immediately suspended.

Having lived in MI entirely until then, it was refreshing to see a different program and it seemed to work well.

Should Michigan do this? Shouldn't the SOS know electronically who our insurance company is?

Would this help reduce the number of uninsured drivers?

What say you?

**iheartthed** · February-17-12, 11:22 PM

It would just increase the number of people driving on suspended licenses/plates.

**ndavies** · February-17-12, 11:25 PM

The SOS already knows your insurance company. We wouldn't be able to do online renewals without it.

**shovelhead** · February-18-12, 12:51 AM

Before Michigan had mandatory insurance [[No-Fault) we had the choice to have insurance or to pay a fee, originally $35.00 then later $45.00 into what was known as Motor Vehicle Accident Claims Fund, or MVACF.

It functioned for the not at fault party similar to an insurance policy. They made a claim to the state when the at fault party did not have insurance for their damages, The state paid the amount claimed, less $200.00 deductible. The not at fault party then could claim against their insurance company or sue the at fault party for the deductible.

The State of Michigan paid the claim, then went after the at fault party for the repayment. I had a couple of friends that were in that position. If you paid the state back IIRC within two years either in a lump sum or a payment plan you were fine. If you did not either setup a plan or pay the total amount your drivers license and license plates were suspended until restitution was made.

In theory, a driver either had insurance or paid the MVACF fee at registration time. But the usual loophole was to buy insurance and let it lapse. Then more fun started. Right now I cannot find a old registration, but there was a additional fine if you did not pay the fund fee or get insurance in force upon allowing the previous policy to lapse.

The MVACF fund functioned until mid year 1973 when No-Fault Insurance went into effect thereby mandating that all vehicles registered in this state would have insurance at all times.

IMO Michigan could not afford to run this program today.

**CLAUDE G** · February-18-12, 03:52 AM

I like the idea. I would say 80% of the time I have had damage done to my vehicle it was by an un-insured motorist and I get screwed with paying for the repairs myself to avoid my insurance going up.

But let me hit someone, then my insurance gets wacked and has to pay for everything for damages to both vehicles.

But then like it was said, we would have lots of people out there with suspended licenses.

A better solution would be that the State already knows who pays their insurance on time and who doesn't. If your a person who pays every month, then you can pay your insurance month to month.

If you have a history of not paying such as paying, and might have let it lapse the year before, then lets requre that you show proof that you bought 6 or 12 months worth of insurance in advance before your allowed to register, and maybe assess some sort of fine or penalty.

**Hermod** · February-18-12, 05:49 AM

Maybe the state needs to "unhorse" a few people. You get a routine traffic stop and the cop runs your DL and plates. Everything good OK. No insurance, no DL or suspended DL, or bad plates and your car is confiscated [[not impounded) on the spot and you walk home or call a cab. The car is held for 30 days while you appeal, then is sold for the benefit of the state. Meanwhile, if you owe money on the car, the bank is still going after you for the balance.

We need that in Florida and you need that in Michigan.

**DetroitPlanner** · February-18-12, 09:05 AM

Maybe what we need to do is have immobilizers installed on cars so that when a person is a day or two late on making their auto insurance payment that the State stops the car from moving? Have GPS units on the cars too so we can track those suckers down and have the guys in black suits stand in front of the car with baseball bats so they can't tinker with it till it is paid.

**Roq** · February-18-12, 10:14 AM

Originally Posted by detlump

What say you?

Like ndavies already mentioned, they check your insurance before you renew. I made the mistake of making a routine change on my policy a few weeks before my birthday and it wouldn't let me renew online even though I had a PIN.

My other point is, when it is more cost effective to pay the fines than buy insurance, something is wrong with the system.

**antongast** · February-18-12, 12:10 PM

Originally Posted by Hermod

Maybe the state needs to "unhorse" a few people. You get a routine traffic stop and the cop runs your DL and plates. Everything good OK. No insurance, no DL or suspended DL, or bad plates and your car is confiscated [[not impounded) on the spot and you walk home or call a cab. The car is held for 30 days while you appeal, then is sold for the benefit of the state. Meanwhile, if you owe money on the car, the bank is still going after you for the balance.

We need that in Florida and you need that in Michigan.

Maybe we just need to punch poor people in the face until they decide to grow some bootstraps and stop being poor. That'll show 'em!

**Wesley Mouch** · February-18-12, 12:56 PM

Originally Posted by antongast

Maybe we just need to punch poor people in the face until they decide to grow some bootstraps and stop being poor. That'll show 'em!

Might work better than liberal love plan. That's not worked. Has it.

If we indeed have 'no fault' insurance, why does it matter if you're struck by an uninsured motorist. Your insurance company pays your claim. The problem is only if this claim increases your individual insurance premiums. Then it becomes, by practice, 'your fault' insurance.

**antongast** · February-18-12, 02:25 PM

Originally Posted by Wesley Mouch

Might work better than liberal love plan. That's not worked. Has it.

I...holy shit. Is this you?

**iheartthed** · February-19-12, 12:01 PM

Originally Posted by Wesley Mouch

Might work better than liberal love plan. That's not worked. Has it.

If we indeed have 'no fault' insurance, why does it matter if you're struck by an uninsured motorist. Your insurance company pays your claim. The problem is only if this claim increases your individual insurance premiums. Then it becomes, by practice, 'your fault' insurance.

You live in a region that puts close to zero dollars into public transit. You also live in the state with the highest car insurance in the country. Something tells me that it's not the fault of the poor that they can't afford to be legally mobile -- unless you take into account their unfortunate decision to live in Michigan.