The Cheapest Auto Insurance Rates for West Virginia?

By: Mike Silverstone, Car Insurance Analyst
CheaperCarInsurance.com

A new bill, which has been passed by the Senate, could ultimately mean the cheapest auto insurance rates for drivers living in West Virginia. The bill will require West Virginia law enforcement officers to have online car insurance verification systems. This will help quickly identify uninsured drivers and issue tickets for not carrying insurance, which should bring down the number of uninsured motorists. This will result in lower insurance rates for everyone else in the state.

Car insurance rates in West Virginia are nearly twice as much as rates in some of its neighboring states. The reason is primarily due to the lack of enforced laws for uninsured drivers; therefore it raises the cost of coverage for uninsured motorists. For instance, the cheapest auto insurance rates right now average around $350 for six months, while in Virginia it’s approximately $200.

How is the Online Verification System Beneficial?

All drivers are required to carry proof of insurance in their vehicles. Currently, if a driver gets pulled over, they must provide proof of insurance although they may no longer have coverage or not enough. Many drivers will get insurance so they can register their vehicles and then cancel their policy afterwards. Most policies are for six months at a time, so by providing a card that would still be under the policy, it would appear that the driver is insured.

The way the online verification system works is that it can pull up information on a motorist providing police the ability to see if a driver is insured or not. This proves beneficial for reasons such as:

• Reducing the number of uninsured drivers on the road
• Reporting uninsured motorists to DMV
• Cheapest auto insurance rates for West Virginia

An estimated 13.6 percent of all drivers are uninsured and it’s costing tax payers millions of dollars each year. The online verification system put in practice could mean drivers will see the cheapest auto insurance rates West Virginia has seen in years.

Once a driver’s information indicates they are uninsured, the DMV cancels their registration and the driver could face some hefty penalties. State officials are hoping this will provide incentive for more drivers to get adequate insurance coverage and bring down costs.

How Does Auto Insurance Industry Feel About the New Bill?

Most auto insurance companies remain neutral on the debate about the bill. This is most likely because they make more from the current process, which allows them to charge higher rates. It’s no wonder they might not be pleased with the bill, as the cheapest auto insurance rates mean less profit for insurance companies.

Initially, the bill brought unease to American Civil Liabilities Union, concerned about the violation of rights. However, the bill does comply with privacy rights while verifying insurance coverage. The system only allows officers to see whether or not the motorist is currently insured. It does not require any further information about the policy holder.

If the bill passes the House, West Virginia will become the 41st state that requires this insurance verification system. This would be great news to West Virginia drivers as they could be saving with the cheapest auto insurance rates they’ve ever had to pay. However, it’s up to the insurance commissioner to make sure insurance companies will put the lower rates into place as a result of the bill.

With 40 out of the 50 states already using this insurance verification system, there should be no reason for concern that the bill won’t pass. West Virginia drivers will be happy knowing there are less uninsured drivers on the road and more money in their wallets with the cheapest auto insurance rates.

Posted: March 06, 2010