Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, January 6, 1992 TAG: 9201060115
SECTION: VIRGINIA PAGE: A3 EDITION: METRO
SOURCE: Associated Press
DATELINE: LENGTH: Medium
UNINSURED DRIVERS GET `A FREE RIDE'
Uninsured drivers are costing those with insurance millions of dollars in increased premiums, but insurance industry representatives say there isn't much that can be done to solve the problem.Virginia is one of eight states that permit motorists to drive without automobile insurance, but many of those taking advantage of the privilege are doing so illegally, according to state figures.
In order to drive without insurance, Virginia motorists must pay a $400 fee to the state - some of which is then distributed to insurance companies to defray the premiums of insured drivers.
In the 1990 fiscal year - the latest year for which the state Department of Motor Vehicles has statistics - 5,008 uninsured drivers voluntarily paid the fee.
But officials caught nearly four times that number, 19,349 people, who didn't pay the fee.
The DMV has no estimate of the amount of non-paying drivers who are not caught.
"People who are getting around the law are pushing up the costs for everyone else. They're getting a free ride. Among other things, it's socially unfair," said Tim Dove, a consultant for the New York-based Insurance Information Institute.
"The industry has a vested interest in cutting down the number of uninsured drivers . . . but no one has figured out a golden solution," Dove said.
"You can't make people buy insurance or stop driving."
Typically, about 15 percent of a state's drivers are not insured, insurance institute figures show.
While states and companies are looking to lower that figure, mandatory insurance laws, which are found in most states, do not seem to have much effect.
A study conducted by the Insurance Industry Committee on Motor Vehicle Administration found that compulsory insurance laws don't necessarily cut down on the number of uninsured motorists.