Auto insurance scam

[trof]

Proud2Blib's thread reminded me of this.

A friend got T-boned at an intersection recently. No serious injuries, but car totaled.
The woman who ran stop sign and hit her had no insurance.
How do you do that?
You have to have proof of insurance to get driver's license, tags, etc.

Friend's lawyer explained.
"They sign up for a policy and make the first payment. That gets them the proof-of-insurance receipt. Then they just quit making payments and the policy is canceled."

Wouldn't you think there'd be some procedure for the ins. co. to notify the state or something?
:shrug:

[alarimer]

1. This happens a lot here

I've never understood why you need proof of insurance to get a driver's license. What if you didn't own a car but drove someone else's occasionally? Or just for work? Though I guess you might need some kind of non-owner insurance.
But people change policies all the time; if they cancel it doesn't necessarily mean they are going without, so I am not sure the state could do much with that info.
The punishments for driving without insurance should be more severe. Like jail time.

[Kali]

2. Here in Arizona the insurance co.'s DO inform MVD - but

if somebody doesn't give shit about carrying insurance, do you think the care about suspended reg or licenses? Until they get caught and have the plates taken away they are "clear" and even with this procedure it can take a couple of months for the data to get to a place where the cops would know.

[Pavulon]

3. in NC

they revoke your plates. If you do that here you get royally screwed, pay for new plates, new license(the old one suspends),and a new policy.

The shitty thing is now your insurance will go up if you have to make a claim against it.

[ScreamingMeemie]

4. My ex did that...but he didn't even pay the first payment. He put a deposit

down and got a binder that he took to the SoS office. There are all kinds of ways around the insurance clause.