Share “Uninsured drivers cost Oklahoma millions...”

Uninsured drivers cost Oklahoma millions in taxes, agency says

Oklahoma has one of the highest rates of uninsured motorists in the nation, according to several studies.
by Brianna Bailey Published: January 12, 2013
Advertisement

Uninsured drivers cost Oklahoma $8.8 million a year in tax premiums, according to a new study by the Oklahoma Insurance Department.

The agency estimates Oklahoma has 563,692 uninsured drivers. Based on an average annual cost of liability insurance for those drivers of $700 and a premium tax rate of 2.25 percent, the state loses more than $8.8 million annually.

Several estimates place the state with a high number of uninsured drivers.

Insurance Commissioner John Doak said he believes the problem is partly a result of lax enforcement of state law in the past.

Since 2010, law enforcement officers in the state have had the ability to impound the vehicles of uninsured drivers.

Looking for answers

Doak said his office is working with other state officials to come up with ideas on how to further crack down on uninsured drivers, including seizing an offending driver's car tags until the vehicle is insured.

Doak said he also supports increased fines for failure to carry liability insurance.

“A low fine may be less expensive than paying for the insurance — and some people are taking that gamble,” Doak said.

The Insurance Department bases its estimate of the number of uninsured drivers in the state on data from the Insurance Research Council, the U.S. Transportation Department and the National Association of Insurance Commissioners.

Continue reading this story on the...

by Brianna Bailey
Business Writer
Brianna Bailey has lived in Idaho, Germany and Southern California, but Oklahoma is her adopted home. She has a bachelor's degree in Journalism from the Univerisity of Oklahoma and has worked at several newspapers in Oklahoma and Southern...
+ show more


Trending Now


AROUND THE WEB

  1. 1
    Tulsa World sues Fallin, DPS over execution records
  2. 2
    Bob Stoops No. 3 on Forbes' 'College Football's Most Powerful Coaches' list
  3. 3
    OU football: Former OU defensive end Frank Alexander reinstated by Carolina Panthers
  4. 4
    Thunder make two appearances on SI.com's favorite NBA moments of 2014
  5. 5
    OKC Thunder: Kevin Durant misses practice, status unknown vs. Blazers
+ show more