Category :

Insurance law reform.

Proposed legislation:

For liability purposes, we propose that insurance should follow the licensed driver as oppose to needing insurance separately for each and every vehicle the person may own.

Current Law :

currently any vehicle licensed for operation on the road needs to have at a minimum basic liability insurance or the owner needs to purchase uninsured motorist vehicle's insurance from their respective state for each and every licensed road vehicle vehicle


While we agree that insurance is necessary to protect accident victims, we feel that the current policy of insuring vehicles costs drivers unnecessary fees and actually hurts the general economy.

Reason for change:

Insurance companies claim that the cost of insuring a vehicle is dependent upon the risk associated with the operation of the vehicle.

A common sense argument for having the insurance to follow the licensed driver rather than the licensed vehicle would be the case of a person owning 2 or more vehicles.

Being that a licensed driver can only drive one vehicle at a time - Why would it make sense that a person should have to pay for liability insurance twice (or once for however many vehicles he / she owns) when he or she as a licensed driver can only operate one vehicle at a time?

Insurance companies often justify their costs as based on risk.... Our question is how much liability risk is there with a vehicle that basically sits because it actually be driven by one person at a time?...

In effect, insurance companies are enriching themselves for risks that are in fact not a risků A person can only drive one vehicle the time, so being effectively charged for 2 vehicles in this case unduly enriches the insurance company for a risk that does not exist.

Notes / benefits :

If insurance law were to be reformed so that drivers as individuals are insured for liability as opposed to each and every vehicle having its own liability policy, we feel that this would stimulate the economy, since now people with multiple vehicles would be able to fave money or spend money on other tangible items rather than unduly enriching insurance companies.

Another potential benefit could be that people may buy more than one vehicle for specialized purposes (example, a small car fuel-efficient car for general commuting and may be a pickup truck to call a recreational boat trailer or camper), thus in effect saving fuel, stimulating the economy from purchases of other vehicles and recreational type products, not to mention helping the automotive repair industry since at some point, the additional vehicles would presumably need repairs and/or maintenance at some future time.

Questions, comments, concerns?