Privilege-Card Debate has Auto Insurance Implications

RANCHO CUCAMONGA, CA, December 14, 2010 (Press-News.org) A Utah newspaper has reported that State Sen. Steve Urquhart is intent on stoking debate over the controversial practice of supplying driving privilege cards to inhabitants who do not qualify for standard Utah driver's licenses. Utah remains one of the only three states -- along with Washington and New Mexico -- that issue such cards.

But Sen. Urquhart and others want to end the practice. Doing so, though, could have insurance implications.

According to opponents of the privilege cards, the fact that they enable undocumented immigrants to drive legally is unacceptable.

But supporters of the privilege cards say that they help Utah motorists by enabling non-residents to obtain auto insurance with no license. By eliminating standard licensure as a prerequisite to drive and purchase car insurance, motorists who would otherwise go uninsured may be more likely to get covered; this way, the number of uninsured motorists on the road may be kept to a minimum. And according to a 2008 audit report to the state legislature, holders of driving privilege cards do in fact have an insured rate very close to that of Utah driver's license holders.

The auditor reported that at year's end in 2007, there were nearly 35,000 driving privilege cards in place. Of those, the auditors looked at samples of about 3,500 motorists with driving cards and about 3,500 motorists with standard driver's licenses. The analysis of the privilege card group showed a 76 percent insured rate, while the analysis of the licensed group indicated an insured rate of 82 percent.

Source: http://le.utah.gov/audit/08_bilr.pdf

It is too early to say whether Sen. Urquhart's opposition to the practice will ultimately lead to its elimination. There is currently no legislation on the table that would do away with the program.

To find out more about getting insurance without first having official documentation of the ability to drive, readers can go to http://www.onlineautoinsurance.com/learn/buy-auto-insurance-with-no-d ... icense.htm where visitors will find informative resource pages and a quote-comparison generator that will help consumers jumpstart the search for a quality policy.