Friday, May 4, 2007
Admiral has warned motorists they risk invalidating their car insurance policies if they are caught out in a lie...
California has been attempting to cut down on levels of illegal immigrants by denying them driver’s licenses but auto insurers are now increasingly targeting unlicensed illegal immigrant drivers as a potentially lucrative market.
For decades, California routinely issued driver’s licenses to foreign citizens regardless of their immigration status. But, when it began tightening up its requirements amid a general backlash against illegal immigration, many illegal immigrants found that they couldn’t renew their licenses - and so their car insurance was automatically canceled.
Some auto insurers, however, were quick to see a huge opportunity. California law doesn’t bar companies from selling insurance to unlicensed motorists. So, insurers, including some major ones like Progressive Corp., are covering illegal-immigrant drivers, often charging them premiums way above the normal market rate.Jose Catano, an independent agent with five locations in Southern California, uses Spanish-language radio in order drum up business with illegal immigrants, using a slogan that refers to Gov. Schwarzenegger: ‘‘Arnold won’t give you a license, but Catano will give you insurance.’
It seems an apparent contradiction but, for now, the insurance companies are very happy about it...
State Farm says a middle-aged female driver in Tampa pays about $565 every six months for a comprehensive auto package; that would drop to $455 with the expiration of PIP. An older male driver would see his $500 bill fall to $402. And a male teenage driver now paying about $1,675 in Tampa would see his bill drop to $1,280.
So, Florida residents are praying for continued sloth from Florida lawmakers!