Thread: AZ. Lawmakers vote against plan to impound uninsured vehicles

Lawmakers vote against plan to impound uninsured vehicles

Howard Fischer Capitol Media Services | Posted: Friday, March 23, 2012 12:00 am

PHOENIX - State lawmakers declined Thursday to crack down on the more than half-million Arizona motorists driving without insurance.

On a 7-6 vote the House Appropriations Committee rejected a proposal by Rep. John Kavanagh, R-Fountain Hills, to let police impound the vehicles of those who have not purchased the legally required minimum-liability insurance.

Foes of the bill, SB 1165, said there was too much chance that innocent drivers would end up having to walk home.

Under Arizona law, each vehicle must have coverage for $15,000 to pay the medical bills of each person injured and $30,000 to cover everyone hurt if there's a crash. The law also mandates $10,000 worth of coverage for property damage, normally the repair costs to the other motorist's vehicle.

The law also requires motorists to carry proof of that coverage in their vehicle, usually in the form of a card issued by the insurance company.

What happens, Kavanagh said, is people buy the minimum coverage when they get a car to be able to register it, and then cancel the insurance. Those who are found without proof of insurance are issued a summons to show up in court with either proof that insurance was in effect at the time or that it has since been purchased.

He said that amounts to "telling the person to drive away in your uninsured motor vehicle, possibly to hit some other poor soul that has to pay the expense."

Kavanagh said state officials estimate that close to 12 percent of the 4.8 million vehicles on the road are uninsured.

His measure is based on the Motor Vehicle Division maintaining an online database of which cars and trucks are insured, something that is supposed to be updated by insurance agents and companies.

Kavanagh said if his measure became law, when someone was stopped, whether in an accident inquiry or for a violation, the officer would still ask for that proof of insurance card. If there were no card, then the officer would check the database.

And if MVD said it found no proof of insurance, the vehicle would be towed away.

Kavanagh acknowledged that database has a 3 percent to 4 percent error rate, and that some of those "mismatches" can last up to three months. He said that's often caused by an insurance agent typing in the wrong vehicle identification number.

Rep. Chad Campbell, D-Phoenix, said that can translate out to about 200,000 vehicles - meaning 200,000 motorists who are at risk of having police tow the vehicle even if they are in compliance with the law. He said that's the equivalent of the state's eighth-largest city.

He questioned David Childers, who lobbies on behalf of the Independent Agents and Brokers of Arizona, about who is going to pick up the costs for the towing and for the time off work for people who are insured but have their cars towed anyway.

He said drivers who had to bear those costs "would have a fairly good claim against whoever made the mistake" in the database.

Rep. Vic Williams, R-Tucson, agreed that the error rate in the MVD system is too great to allow police to tow away vehicles based on what it says.

"This bill, the way it is structured, puts too many innocent people in jeopardy," he said.

Lawmakers vote against plan to impound uninsured vehicles

If the legal person were to get towed , why can't there be a provision that upon proof of no wrong doing they get their car back with no charge , pay for work missed . That's got to be cheaper than 4.8 million possible accidents .

Hawk;1268195]If the legal person were to get towed , why can't there be a provision that upon proof of no wrong doing they get their car back with no charge , pay for work missed . That's got to be cheaper than 4.8 million possible accidents

Thats a GREAT Idea but it makes to much sense and wheres the profit going? Not to conflict of interest corrupt lawmakers? Or the Insurance companies!

If Arizona is not requiring insurance for a large portion of the drivrs there, then the law requiring insurance should be repealed for everyone or the state will be discriminating against a class of people, US citizens.

Welcome to the Wild West of Arizona hiways and insurance premiums. If one choses to have insurance, the premuims will be huge becasue Arizona ALLOWS uninsured drivers.