Some 15 Percent of Montana vehicles don’t have insurance
As many as 15 percent of Montana vehicles lack required liability insurance, and current penalties against the owners don’t act as much of a deterrent, the state’s legislative auditors reported.
Legislative auditors, in a 26-page investigation, said they estimate between 9 percent and 15 percent of Montana’s registered vehicles are not insured.
The penalty — $250 to $500 — for those caught driving without insurance often costs less than getting insurance, providing little incentive to comply with the law.
The auditors told the interim Legislative Audit Committee that the current system of checking insurance is not effective. Police ask for a driver’s proof of insurance only if stopped for another infraction, and some drivers doctor up fake insurance cards that officers have no way of verifying, auditors said. There is only a 5 percent chance that an uninsured motorist will get caught for not having insurance, auditors reported.
Although penalties have increased recently, the number of uninsured seems to be increasing, said Dean Roberts, administrator at the Motor Vehicle Division of the Department of Justice.
The number of Montanans found guilty in the courts of driving without proof of insurance increased from 11,206 in 1996 to 15,365 in 2004. The insurance industry estimates roughly 14 percent of drivers nationwide don’t have insurance.
The reasons drivers go without insurance vary from those who can’t afford it to those who would rather not spend money on insurance, Roberts said.
He noted the Department of Justice is looking at the cost and accuracy of a real-time insurance verification systems being tested in other states. The system would let police check insurance by running license plates through a computer, similar to the way they check for current registration.
The Department of Justice may ask for a new law during the 2007 legislation if it thinks the instant verification system could work, Roberts said.
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