With electronic enforcement of compulsory insurance laws, police officers will be able to verify from their vehicles that drivers have automobile insurance.

An Opportunity to Serve the Uninsured Motorist Population
According to the latest study by the Insurance Research Council, there are over 18 million uninsured motorists in our 17 target states. One out of every six drivers in those states is driving without auto insurance. For many of these uninsured drivers, the cost of insurance is a major factor in deciding whether or not to purchase a policy. The lack of enforcement of the states’ auto insurance laws is also a major consideration. However, many states are implementing or considering electronic enforcement of compulsory auto insurance laws. As a result, there is increased risk and penalties for those who continue to drive without insurance.

This pool of uninsured drivers is one targeted customer segment for our Low Cost policy. It is a policy that offers basic coverage, but with its lower average premiums, those who would not otherwise buy insurance have a more affordable option. In 2004, we successfully implemented this product in six additional states and now have it available in 11 of our 17 target states. In 2005, we will be implementing this product in our remaining target states and will continue to work so that consumers are aware that they have a low cost alternative.