March 2, 2010
Bill could lower auto insurance rates, senator says
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CHARLESTON, W.Va. -- State drivers could save a bundle on their auto insurance under a bill passed by the Senate Tuesday, the bill's lead sponsor says.

If passed by the House, the bill (SB394) would make West Virginia the 41st state to require an online verification system for auto insurance, said Sen. John Unger, D-Berkeley.

That would crack down on the large numbers of uninsured drivers in West Virginia, which should result in lower overall auto insurance rates statewide, Unger said.

"This is going to translate into real dollars for everyone in West Virginia who drives," he said.

State senators passed the bill on a 32-0 vote.

Unger said the inability to enforce uninsured driver laws in West Virginia contributes to auto insurance rates that are roughly double those of neighboring states. He used Bluefield as an example, noting that six months of AIG coverage runs an average of $562 on the West Virginia side, but only $278 across the line in Virginia.

West Virginia's policies are pricier because uninsured motorist coverage is more expensive here, Unger said.

"That part of the line-item ought to come down," he said.

Currently, West Virginia law requires drivers to carry a proof of insurance card in their vehicles. However, Unger said that without electronic verification, many drivers get coverage just long enough to get their vehicle registration, then cancel their policies.

The proposed electronic verification system would allow law enforcement officers to immediately verify that drivers have current auto insurance coverage during traffic stops, he said.

The system would simply provide officers with a yes or no answer on whether the driver has current auto insurance - but would not require insurers to divulge any other information about the policy holder.

"The bill is balanced to uphold privacy rights and verify insurance coverage," Unger said.

He said the insurance industry has been neutral on the bill - and said he suspects that's because insurance companies make more money off the current system than they would if all uninsured drivers obtained coverage.

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Posted By: Engineer1967 (11:47am 03-03-2010)
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i have a better idea. a rate cap for insurance companies set roughly equivalent to surrounding states and a portability option that permits purchase of insurance products outside state lines if no comparable product is available within.

Posted By: WVState (8:41am 03-03-2010)
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Anyone remember when "tort reform" was supposed to lower insurance costs in the state? Did that ever happen?

Posted By: pipedreams57 (11:10pm 03-02-2010)
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This says that our politicians have been aware that insurance companies have been exploiting this loophole or weak spot in the system and have been charging ridiculous rates to WV citizens. I wonder if any of those legislators will introduce a bill asking those insurers to set up and pay for this new tracking system?....or do taxpayers get to pump more tax dollars into the DMV while the insurance companies laugh all the way to the bank?

Posted By: WVnewbie (8:26pm 03-02-2010)
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Yes, Yes, Yes!!! I recently moved to Bluefield WV from VA and couldn't believe the difference in insurance prices - then, to add insult to injury, my Allstate policy went up by about 300 dollars...was told it was rate increase for all of WV! House insurance rates are much higher for WV as well! It's about time WV started doing something about the insurance rates here. Because of the policies that currently exist regarding insurance, many insurance companies have even stopped doing business in WV (or parts of WV) as well. Support this bill folks! Desperately needed!!!

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