Statistics show that nationally, about one in seven drivers are operating vehicles on the road without car insurance. Yet states have difficulty in determining which drivers are going without car insurance. Getting a handle on how many uninsured drivers are really out there may be difficult due to the fact that states are using a number of different systems. 

One of the systems used is random sampling. States will send a random list of vehicles to auto insurance companies to find out if there is coverage on the vehicle. Another system used by some states is to require that auto insurance companies provide their entire list of current car insurance customers. Yet another system used is a database that is updated sometimes weekly and sometimes monthly, which provides a list of an insurance company’s customers. 

These are just some of the many systems that different states are using. There is a great lack of consistency and conformity amongst the 50 states. It is virtually impossible for car insurance companies to keep up with all of these systems and of course, making it impossible for states to know who does and doesn’t carry car insurance.

Not only does the difficulty rest in the different systems used but many times there is trouble in figuring out customer information. Registration records with similar names can cause mix-ups. For instance, if there is a customer by the name of John Charles Smith and another customer by the name of John Smith, they can be confused with one another. 

This leads to insurance companies fielding calls from upset customers who receive letters from the state inquiring as to why they don’t have car insurance, when in reality they do. These types of mix-ups with customers can create a number of problems. All of this stemming from a state’s database not matching up vehicle registrations with car insurance records.

All of this presents a huge problem because premiums are affected for policyholders. When someone is in an accident with an uninsured driver who can’t pay for damages or injuries, then the injured party has to bear the burden.