Every state requires that every vehicle operated on public roads have current insurance that meets or exceeds minimum limits. States take this very seriously: drivers cannot update annual vehicle registrations without proof of insurance, drivers are at risk of costly fines if their insurance lapses, and now many states report lapsed insurance to state DMVs (although the reporting periods vary considerably by state). With the coming of virtual drivers licenses and vehicle license plates, it will become increasingly difficult to avoid maintaining current insurance in the years to come.
However, many people – including many otherwise ‘good’ drivers - struggle with or are unwilling to pay for insurance that typically costs $50-$100 month or more for each covered vehicle. There are regions of the country where 25% or more of drivers elect to go without insurance for all or part of the year. The incentive to find ‘work-arounds’ is high for such persons, many of whom are poor or working class making modest incomes. Their needs are too often facilitated by persons representing themselves as brokers (otherwise known as ‘ghost brokers’), or by carriers who fail to adequately monitor serial applicant-policyholder-cancel-repeat behavior of persons helping themselves to gaps in carrier and aggregator origination systems. Such behavior is most common in direct business, and is potentially very costly to carriers caught by this behavior.
idFusion fusion tools can be configured to identify these scenarios, and prevent them from recurring: