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April 5th, 2012
Arizona law would have required uninsured vehicles on the road to be towed.

A failed Arizona law that would have enabled police officers to tow vehicles that aren't insured may have auto insurance lead implications for agents.

According to Online Auto Insurance News, the proposal, authored by Arizona representative John Kavanagh, would have allowed police officers to tow or impound a vehicle that didn't have auto insurance, which they'd be able to determine by referring to an electronic database verification system.

But the bill, SB 1165, was defeated in the Arizona House Appropriations Committee by a narrow 6-7 vote. Opponents to the bill said enforcing the law could have unintended consequences, as database errors or malfunctions may lead to an insured driver's vehicle being towed.

OAI reports that Kavanaugh thought the passage of SB 1165 was necessary, as current law allows drivers who may be involved in a traffic stop to leave the scene, even if they don't have an auto insurance policy. With the exception of New Hampshire, all 50 states require motorists to carry auto insurance.

According to the Arizona State Legislature, driving an uninsured vehicle carries a $500 fine and three-month license plate suspension. A second offense brings a six-month suspension and a $750 fine. If it happens a third time, police officers cite uninsured Arizona motorists with a $1,000 fine and their registration and license plates are suspended for a year.

Had the bill passed, it may have further incentivized Arizona drivers to obtain auto insurance if they didn't have it. This likely would have created more auto insurance leads for agents. Nevertheless, leads for agents likely won't be in short supply, as motorists are legally required to carry coverage.

Precise Leads is a premier online resource providing sales leads for insurance agents. Whether it's with health, auto or medicare leads, Precise Leads can help producers grow their client base.

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