Car insurance companies have been cracking down on drivers who try to buy a car without an insurance policy.
It’s not just for the money either, according to some insurers.
In a recent interview with Medical News Now, Dr. James C. Caughey, a professor of health policy and management at the University of California, Los Angeles, explained that some insurance companies are now charging a fee for the insurance of drivers who don’t have a car insurance policy, or are at high risk for auto accidents.
Caughey also noted that the cost of insurance is going up and that consumers are more likely to be insured when the price of the car is high.
He pointed out that if a driver doesn’t have any insurance and drives a vehicle without a policy, they are potentially paying more for the vehicle.
“If the car was going to be damaged, that’s an additional cost for the company to cover, and that’s where the additional costs are going to come from,” Caugherty told Medical News Live.
Dr. Caughhey, who has worked with insurance companies for many years, said that he believes that insurers are not only looking out for their own bottom line, but also for the consumer’s safety and well-being.
“They’re looking for a way to maximize profits,” Caughhew said.
“What I’ve found is that insurers have been increasingly willing to pay the cost for consumers who are not insured.”
For some insurance policies, Caughee said, consumers are often paying more than their actual cost of the vehicle, so insurance companies want to make sure they get the most out of their policy.
Insurers are looking at the fact that many people have no insurance, and they’re often paying higher premiums than if they had the car insurance.
“I think that’s part of the problem with this,” Coughhey said.
He said that the industry needs to make better efforts to educate consumers about the insurance requirements and benefits.
“If consumers understand what the policies do and don’t do, then the consumer is going to say, ‘Well, you know what, I can’t do that, I’m going to go get my insurance.'”