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AZ House Voted Down Proposed Legislation to Impound Uninsured Vehicles

on March 31, 2012

Last Thursday, March 22, 2012, the Arizona House Appropriations Committee voted down a bill that would have required police to impound on the spot any vehicles they found to be uninsured during routine traffic stops.

While the bill sounds good at first – the insurance industry did not support it.  Why, you ask?  Wouldn’t it just create more revenue for them?  Well, the Arizona Department of Transportation, which oversees MVD operations, has reported there are as many as 200,000 incorrect entries in their database – often due to the insurance providers entering an incorrect VIN number for vehicles, or due to an MVD employee making a typo.

Do we really want to impound someone’s vehicle (who’s legally insured) due to a clerical error?  Also, who’s going to pay for the towing and impound fees in such a case?

I think we can all agree that the purported 10-14% of Arizona drivers who are driving uninsured is a huge problem that affects us all.  Let’s hope our legislators can come up with a better way of dealing with it that won’t impact people who are following the law but had their information entered incorrectly into the system.

If you have any questions about your car insurance or would like a free quote, please contact us.  We’re well behaved, don’t bite (often), and will always respect your time.

Go Time Insurance, (602) 938-1515



2 responses to “AZ House Voted Down Proposed Legislation to Impound Uninsured Vehicles

  1. Don says:

    There are many states who have databases and it works. Some insurance companies are against because they know the that uninsured driver is a risk they wouldn’t normally insure it wouldnt mean more income for them. They would have to spend resources to implement a systemt that wouldn’t increase revenue.

  2. I deal in primarily nonstandard insurance and there are very few risks my carriers won’t insure. But, I suppose you’re right, Don, in that implementing such a system would mean additional expense on the part of the carriers to make sure they are transmitting accurate information to the MVD. But, honestly, it’s hard for me to understand why the information isn’t accurate now, as I can’t even quote (much less bind a policy) without entering the correct VIN number into my comparative rater which, in turn, bridges over to the carrier. So, how are all these errors occurring?

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