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Nevada Fights Drivers Without Car Insurance

The state of Nevada has become the latest among many across the country taking action to battle the problem of uninsured motorists. Drivers who operate their vehicles on the roads with no car insurance not only risk financial repercussions for themselves; they also put other drivers in danger of the same sorts of troubles. The uninsured motorist problem has gotten more attention in legislatures across the country recently as lawmakers have attempted to do everything they can to bring down auto insurance prices for drivers who actually do carry insurance. The uninsured motorist component of a policy can cost hundreds of dollars a year in some states, essentially meaning that law abiding citizens are paying out big money to insure everyone else.

The NV LIVE Verification Program

Nevada has chosen to require motorists to provide valid proof of insurance at the time of auto registration, a practice in use in many other states. The purpose of this plan is to force more uninsured drivers off state roads. Under the terms of the NV LIVE (Nevada Liability Insurance Verification Electronically) program, motorists in the state will also have to show proof of car insurance at registration renewal time, reinstatement of registration privileges following a suspension, and at the time of any license plate changes.

But the NV LIVE program does not stop there in its effort to curb the problem of uninsured motorists on the roads of Nevada. Effective February 1, 2010, the NV LIVE program also allows the Nevada Department of Motor Vehicles (DMV) to obtain this insurance information at the time of registration in order to have instant access to it later. The state has set up a computer database so that registration and insurance records can be compared one to the other at any time.

Many states have implemented similar systems with positive results. Putting together a database that a state DMV official can access at the touch of a button can help state DMV and law enforcement officials to work together to counteract the uninsured motorist problem in the state of Nevada. There is a great need for this type of system, as uninsured drivers cost both drivers and the state a great of money in a variety of ways. For example, motorists have to pay more on their insurance to essentially cover the uninsured on their plans. This costs them money out of pocket for someone else's indiscretions. And the state loses money from registration revenues, reducing its ability to utilize these funds to operate critical DMV departments and oversee state roads.

Having a system in place to monitor registration and car insurance information is another tool the state of Nevada can use to try and stay on top of the uninsured motorist problem. Due to a number of factors, high percentages of motorists in state have chosen or been forced to forgo auto insurance.

Challenges of Maintaining Auto Insurance

The current state of the state and national economy are major factors in the Nevada uninsured motorist issue. With so many people losing their jobs or being forced to accept cut back wages to stay on their company payroll, many people have had to make hard choices about what to keep and what to let go in their personal financial budgets. It's not just the drivers trying to beat the system or those who don't care about the law who are going without auto insurance. Many of the uninsured drivers in Nevada are simply those individuals who are struggling the most these days to get through each day.

But even in spite of all of this, drivers in Nevada have to always bear in mind that auto insurance is required according to state law. It is against the law to operate a vehicle on state roads without proper liability insurance at the very least. And it's illegal to falsify auto insurance information in order to get a vehicle registered with the state. Yet these are some of the choices these drivers are facing due to current conditions.

This is not to say that every uninsured driver has pure motives at heart. There are some who have older cars or questionable driving records who are simply hoping to avoid a big bill. In some cases they actually do enroll in auto insurance coverage, usually with a provider who does not require a large down payment to get into a policy. Then they take their proof of insurance to the state DMV to get their car registered so that their license plate does not draw the attention of law enforcement officials. Once they have their registration, they cancel coverage or let it lapse. This kind of strategy has been used many times in states all over the country for many years. It is not unique to Nevada, nor is it new due to this current economic recession. But the changes to the way insurance verification and registration are administered in Nevada will make this sort of thing harder to pull off in the future.

Reasons to Get Auto Coverage

Even in spite of the financial difficulties many of us are going through these days, there are more reasons to get auto insurance than there are to forgo this coverage for the sake of saving money. First and foremost, it must be understood that any monetary savings you may enjoy by choosing not to insure your car are likely going to be short lived. When you flout the legal system and go without car insurance, you are putting yourself at risk in a number of ways. First of all, you could get pulled over at any time even for a simple reason like a burned out tail light or running through a yellow. With this new system in place, an officer can quickly see past your insurance scheme and find out that you are not really insured at all. Thus, any routine traffic stop may lead to serious legal trouble. The cost of dealing with all of this will surely be much more than the amount you might have thought you were saving by going without a Nevada car insurance policy.

Second, you might get yourself into serious trouble if you get into an accident with another vehicle and you have no insurance. Although the other driver may carry uninsured motorist coverage, they still might come after you for liability payments if you were at fault in the accident rather than making a claim on their own policy. Even without insurance you still could be compelled to pay. Not having suitable car insurance does not magically eliminate your financial responsibility in these situations. It only hampers your ability to live up to this responsibility without compromising your personal assets.

The Nevada NV LIVE program probably will not completely eliminate the problem of uninsured motorists driving on state roads, but it is an important step toward addressing that problem and routing it out. Drivers who are currently without car coverage in the state of Nevada should reconsider their position in light of this new program put into place on Feb. 1 and think about how much they are really savings by going without coverage.


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