This is definitely not an endorsement of this tiny vehicle, but I just love the looks of the Smart ForTwo car. I've seen several in Dallas, and had a chance to examine a couple of them up close. They so much smaller than a Cooper that it's startling. And the Smart Car Web site is almost as cute as the car itself.
As reported in today's Dallas Morning News, Texas may actually start getting serious about punishing uninsured motorists. Of course, I'll believe that when I see it happen.
For many years, it has been against the law to operate a motor vehicle in Texas without complying with the financial responsibility act — basically either showing proof of liability insurance or putting up a bond to be self-insured. But that law has never been vigorously prosecuted, and there has been no state-wide effort to identify uninsured motorists and get them off the road. Why? Because the auto insurance companies have always been opposed to mandatory insurance, and in Texas the insurance companies control the Legislature and the courts.
Auto insurance companies make high profits for the same reasons health insurance companies do — they insure only the cream of the crop, unless forced to do otherwise by law. So auto insurance companies are perfectly happy to insure only the people who are rich enough to easily afford insurance and who are responsible enough to buy it. As for the poor and/or irresponsible drivers, the carriers would much rather not be burdened by insuring them. Here are excerpts from the newspaper article:
Three years after the Legislature passed a law to crack down on uninsured motorists, the number of drivers caught without insurance coverage under the 2005 statute is exactly – zero.
Start-up of the new insurance verification program has been snagged by initial delays in hiring a private contractor to create a database, differences among state agencies responsible for implementing the law, worries that some data may be inaccurate and doubts about the program by the insurance industry.
The program, funded with an annual $1 fee paid by all Texas drivers when renewing their vehicle registration, aims to create a database for police officers, state troopers and vehicle inspection stations to instantly verify whether a motorist has the minimum coverage required under state law. The database would be set up with information provided by insurers.
An estimated one in five Texans drives without insurance, costing insured motorists an extra $1 billion a year for protection against uninsured drivers. State officials say they are aiming to launch a pilot program in June.
One group that lobbied for the law was MADD [Mothers Against Drunk Driving] of Texas, which argued that the average drunken driver is less likely to have insurance than other drivers.
"The need for this law has not changed in the past three years. In fact, it has probably gotten worse," said Bill Lewis of MADD-Texas. "There are probably more uninsured people today than when the law was passed."
Between 3 million and 4 million of the state's 16 million drivers are uninsured, according to state officials and the insurance industry.
"We have never supported any sort of compulsory auto insurance, particularly one open to inaccuracies when using a database," said Jerry Johns, president of Southwestern Insurance Information Service, an industry group.
"We will abide by the law and will certainly cooperate with the Texas Department of Insurance and other agencies involved. But we are concerned that if mistakes are made in the new system, it is the industry that will be blamed, and that's not the way it should be."
Although Texas has had a financial responsibility law requiring drivers to buy insurance for several years, enforcement has been difficult even though proof of insurance must be furnished to get a license renewal or safety inspection.
Millions of motorists skirt the law by using counterfeit proof-of-insurance cards or by obtaining a month's coverage of insurance to get an ID card, only to cancel the policy once they get their licenses renewed or their vehicles inspected.
Under the state program, a driver pulled over for a traffic violation or involved in an accident will still be asked to produce proof of insurance. But the officer also will run the license plate of the vehicle through the insurance database to determine whether the driver has insurance.
The state also will contact drivers without insurance by mail, warning them of the consequences for not having an insurance policy.
This is the official news release from the Texas Department of Insurance about the recent increase in auto liability limits:
Minimum Auto Liability Insurance Limits to Increase on April 1
AUSTIN – The minimum amount of automobile liability insurance Texas drivers are required to carry for bodily injury/property damage will increase on April 1 from the current $20,000/$40,000/$15,000 (“20/40/15”) coverage to “25/50/25” coverage.
Texas law requires people who drive in Texas to be financially responsible for the accidents they cause. Most drivers do this by buying auto liability insurance. Liability insurance pays to repair or replace the other driver’s vehicle and pays the medical expenses of the other party; it does not pay to repair or replace the policyholder’s vehicle.
The current minimum amount of liability insurance required by law is $20,000 for each person injured in an accident, up to a total of $40,000 for everyone injured in an accident, and $15,000 for property damage per accident. The limits will increase on April 1 to $25,000 of coverage for each injured person, up to a total of $50,000 per accident, and $25,000 for property damage.
The 80th Legislature amended the current financial responsibility law in 2007 to increase the auto liability limits amid concerns that the current limits aren’t enough to cover the costs of an accident resulting in severe injury or major vehicle damage.
The limits will increase again on January 1, 2011, to $30,000 of coverage for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident (30/60/25).
Drivers who carry minimum limits will begin to notice the new limits as they renew their auto policies or buy a new policy, but they won’t need to take any action unless contacted by their insurance company.
There are severe penalties for violating the state’s financial responsibility law. A first conviction will result in a fine between $175 and $350. Subsequent convictions could result in fines of $350 to $1,000, suspension of your driver’s license, and impoundment of your vehicle. The state of Texas will implement the new Texas Financial Responsibility Verification Program this spring that will allow law enforcement officers to immediately verify whether a driver has car insurance.
For more information about the new limits or automobile insurance coverage, visit the Texas Department of Insurance (TDI) resource page at http://www.tdi.state.tx.us/consumer/financialrespon.html, read TDI’s Automobile Insurance Made Easy publication at http://www.tdi.state.tx.us/pubs/consumer/cb020.html or call the Consumer Help Line at 1-800-252-3439.
I've written before about the woefully low minimum automobile liability insurance limits in Texas, and how they were going to changed in April 2008. Well, the time has finally come, and as of April 1, the minimum insurance requirements were increased under the Texas Motor Vehicle Safety Responsibility Act. This applies to policies purchased or renewed on or after that date.
Now, the minimum limits are no longer 20,000/40,000/15.000. The new state-mandated limits are 25,000/50,000/25,000. That means $25,000 for bodily injury to or death of one person in one accident; $50,000 for bodily injury to or death of two or more persons in one accident; and $25,000 for damage to or destruction of the property of others in one accident. These limits are still far too low, both for injury and property damage, but at least it's a small step in the right direction.
We advise all our clients to purchase more than the minimum limits if possible, and please pay the few extra dollars to add Personal Injury Protection and Uninsured Motorist coverage to your policy. Statistics show that 25% or more of all Texas motorists have no auto insurance coverage. If you get hit by one of those drivers and you don't have Uninsured Motorist coverage, you'll probably be out of luck. Talk to your insurance agent now about adding this coverage.
The Dallas Morning News reports today that the state is taking at least one small step toward protecting auto accident victims from unauthorized and sometimes illegal solicitation from medical clinics, body shops, and lawyers.
As is, anyone who is involved in a collision in Dallas is exposed to literally dozens of phone calls offering free X-rays, free property damage estimates, and worst of all, legal representation. Telemarketers or representatives for doctors and lawyers line up at the police department every day and buy accident reports. Then they call the innocent parties in the collision, if the police report verifies there is insurance available. Various bills to protect consumers from these solicitation calls have either not passed the Texas House or Senate, or in one case, was vetoed by Governor Perry.
The calls are frequently made on behalf of medical clinics, and
offer to come to the accident victim's house and drive them to the
doctor for a free consultation. In many cases, once the person arrives
at the doctor's office he or she is told that before the examination
can begin, a contract must be signed with a lawyer who has
representative at the clinic. It is not only unethical, but also
illegal, for a lawyer to solicit business in this manner.
Unfortunately, neither the State Bar nor the District Attorney's office
seems to take any interest in these violations. As a result, accident
victims are essentially tricked into hiring unethical lawyers (who
probably are not among the best lawyers in town).
Now, by agreement between the Texas Department of Public Safety and the Texas Department of Transportation, accident victims will no longer have to give their phone numbers after a collision. Of course, it won't take much work to find numbers on the Internet, and some hard-core solicitors will just drive to the homes of the victims. Still, it's a step in the right direction. The new rule takes effect Monday, April 7, 2008. Here are excerpts from the story:
"It is getting to the point where every person involved in a reported traffic accident is being solicited," said Mark Hanna, a spokesman for the Texas Committee on Insurance Fraud, a panel created by the insurance industry and the Texas Department of Insurance.
"The telemarketers say whatever it takes to get crash victims into the doctor's office. They are today's lazy ambulance chasers, doing it all by phone. We are trying to put a stop to these calls or at least slow them down."
Without phone numbers on official crash reports, telemarketers will have to rely on phone books or the Internet to get numbers to contact accident victims, Mr. Hanna said. They won't have access to unlisted numbers, cellphones and business numbers – which officials estimate will cut the number of unsolicited calls by at least half. Fred Lohmann, Dallas-area director of the nonprofit National Insurance Crime Bureau, said telemarketers line up every day at police departments and central records offices across the state to purchase crash reports from the previous day. Although state law requires them to know the date and location of the accident to buy each report, telemarketers simply purchase police department dispatch logs beforehand and get the information they need to purchase the crash reports. "The accident reports are the fuel that allows the solicitation process to work," Mr. Lohmann said. "Oftentimes they will give the appearance of being a representative of the victim's insurance company, and they tell the person to go to a clinic for treatment or risk not getting their insurance claim paid."
A bill was introduced in the Legislature last year to impose a 30-day hold on all crash reports, except for crash victims, law enforcement officers, insurers and the news media. But the measure was killed under heavy opposition from telemarketing firms.
"We're up against a group that has made a lot of money through these harassing phone calls, and they'll do whatever it takes to stop us," Mr. Hanna said, noting that another effort will be made to pass the bill in the 2009 legislative session.
The Texas Trial Lawyers Association and the Texas Chiropractic Association supported the legislation as well as another bill to make telemarketing of traffic victims illegal. That bill also failed.
The solicitation of business using information contained in a police dispatch log is a Class B misdemeanor in Texas, but most prosecutors say they can't justify the resources to go after telemarketers who violate the law.
Insurance industry representatives said the additional medical and legal expenses created by telemarketers generate unnecessary costs that are in the end paid for by insured drivers across the state in the form of higher premiums.
Have you received an e-mail saying that the Texas Department of Public Safety offers free roadside assistance and that the phone number is on the back of your Texas driver license?
That's sort of true, but not exactly. If you have a roadside problem (NOT an emergency like a major car wreck), you can call that number on the driver license and DPS will pass along your information to the nearest local authorities, who may or may not offer roadside assistance. Any any rate, the motorist will be responsible for any charges for towing or repairing a flat tire, etc.
Here is the information from the DPS Web site:
The public needs to be aware that an erroneous e-mail is being circulated about the Texas Department of Public Safety Roadside Assistance Hotline.
The toll-free line has been operated by DPS since 1989 for motorists to use when reporting non-life-threatening situations on Texas roads and highways. DPS then passes the information along to the appropriate local police agency or DPS office.
If a tow truck is ultimately dispatched, the motorist is responsible for any costs incurred. Some cities and agencies do have courtesy patrols and roadside trucks to provide non-towing services and they may be dispatched by the local agencies when appropriate. These two points are misrepresented in the widely-circulated e-mail that has led to an increase in inquiries to the Roadside Assistance Hotline.
The number, 1-800-525-5555, is printed on the back of virtually all Texas driver licenses and identification cards. Customers of participating wireless companies - ALLTEL, Nextel, Cingular Wireless, Houston Cellular and Verizon Wireless - can dial *DPS (*377) free of airtime charges anywhere in Texas.
Examples of when a motorist should call the Roadside Assistance Hotline include: stranded with car problems, hazardous road conditions, debris in the roadway, suspicious activity at a rest area, and obviously intoxicated or dangerous drivers.
The Roadside Assistance Hotline is not intended to replace 911 as an emergency number; 911 should still be the first option for emergency situations.
To better assist our communications operators please have the following information ready:
- Your name, cell phone number (and vehicle description if applicable);
- Highway location (mile marker would be helpful); and
- County location, or city location if inside city limits.
My friend, Virginia lawyer Ben Glass, has written about the recent (and ridiculous) Virginia laws that charge bad drivers enormous fines. Besides the outrage from drivers being fined literally thousands of dollars for minor traffic violations, there now exists the very real possibility that hundreds of thousands of drivers could have their licenses suspended for inability to pay the fines.
The latest development is that the Legislature was going to try to just order the courts not to collect the fines. Oops -- there happens to be a 130-year-old state law that prohibits lawmakers doing that. So back to the drawing board...
Let this be one of your New Year's resolutions -- don't drink and drive.
After almost 37 years of representing auto accident victims, I have seen far more than my share of the misery drunk driving can cause. Everyone always thinks it won't happen to them, that even though they're a bit tipsy they'll be able to drive all right. Don't do it! The potential consequences are just too devastating. Have a designated driver or call a cab when you've had even a little too much to drink.
Here are the latest figures from Mothers Against Drunk Driving:
In Texas, 1,677 people were killed in alcohol-related crashes in 2006.
In the United States, nearly every 30 minutes someone is killed in an alcohol-related crash -- approximately 17,602 in 2006.
Of the 42,642 total traffic fatalities in 2006, 41 percent were alcohol-related.
Surveys estimate that 10.8 million people aged 12 to 20 years used alcohol in 2006. Of these, 7.2 million were binge drinkers, and 2.4 million were heavy drinkers.
After many years of lawsuits by plaintiff lawyers against auto manufacturers for improper and inadequate side-impact protection, the Department of Transportation has finally taken steps to mandate higher passenger safety. Better late than never. Here is the DOT statement:
U.S. Transportation Secretary Mary E. Peters today announced new side impact safety requirements for all passenger vehicles. It is expected that the upgrade, developed by DOT’s National Highway Traffic Safety Administration (NHTSA), will save hundreds of lives every year. The new standard requires auto manufacturers – for the first time ever – to provide head protection in side-impact crashes. It also would enhance other protections for passengers involved in such crashes.
"This new standard will spare hundreds of families from losing a loved one in a side- impact accident, and will forever raise the bar on safety for drivers and passengers across America,” Secretary Peters said.
Side-impact passenger vehicle crashes are a serious – and frequently severe – safety problem on the nation’s roadways. Side impact crashes account for 28 percent of all fatalities, the majority of which involve a brain injury. NHTSA estimates that the new requirements will save over 300 lives and prevent nearly 400 serious injuries per year.
For the first time, a dummy representing a small adult female will be used in side-impact performance testing. A new and more technically advanced dummy representing an adult male of average height will also be used in crash testing.
"With these rigorous new requirements, we are building on the strength of innovative and life-saving side impact technologies that are already available to many new car buyers,” NHTSA Administrator Nicole R. Nason said.
While NHTSA does not require specific technologies to meet its new performance requirements, manufacturers likely would meet this upgraded rule with various types of innovative head, chest and pelvis protection systems, such as side curtain air bags and thorax air bags.
Issued today by NHTSA, the new rule will require that manufacturers begin equipping all vehicles with improved side-impact protection that meets the federal standard, beginning with a phase-in schedule that starts in 2009.
A Connecticut law firm has a cool "Lemon Meter" on their Web site, enter a few facts about your vehicle purchase, and you'll find out whether your car is covered by your state's lemon laws.
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