Auto Insurance Non-Compliance in the USA

For anyone who doubts that there will be a huge number of people not complying with the mandate, consider the large scale non-compliance with required auto insurance.

With auto insurance, you can opt out simply by not driving a car. There will be no way to dodge liability under the health insurance reform proposals (short of intentionally reducing your income and assets to the point where you can get Medicaid).

Non-compliance with a health insurance private product purchase requirement that there is no way to dodge will be substantially greater than is the non-compliance with the auto insurance requirement, and greater still given the fact that health insurance is far more expensive than is car insurance (unless you are a really bad driver), and greater still given the economic conditions. So the percentage of non-compliance will be much greater than what you see for auto insurance below.

ESTIMATED PERCENTAGE OF MOTORISTS WHO ARE UNINSURED BY STATE AS OF 2004
Mississippi 26
Oklahoma 15
Virginia 10
Alabama 25
Rhode Island 14
West Virginia 10
California 25
Wisconsin 14
Pennsylvania 10
New Mexico 24
Arkansas 14
South Carolina 10
Arizona 22
Hawaii 13
Georgia 10
Tennessee 21
Kansas 13
New Jersey 9
Dist. of Col. 21
Montana 12
Utah 9
Florida 19
Iowa 12
Idaho 9
Washington 18
Oregon 12
South Dakota 9
Nevada 17
Missouri 12
New Hampshire 9
Michigan 17
Maryland 12
North Dakota 9
Texas 16
Connecticut 12
North Carolina 8
Illinois 16
Kentucky 12
Nebraska 8
Indiana 16
Delaware 12
New York 7
Ohio 15
Wyoming 11
Massachusetts 6
Alaska 15
Minnesota 10
Vermont 6
Colorado 15
Louisiana 10
Maine 4

The auto insurance non-compliance rates would be much higher now, five years later, 20-70% higher, given the depression/recession conditions.

Source: http://www.insurancejournal.com/news/national/2006/06/28/69919.htm

[The above was written in response to this article.]