Missouri's Uninsured Motorists Cost Insured Motorists Millions Every Year

State law requires all Missouri motorists to be insured. Insured motorists bear the costs of uninsured motorists through the required uninsured motorist coverage included in vehicle insurance policies. The average annual uninsured motorist premium is $23 per vehicle and costs insured motorists about $90 million a year. This audit analyzed how well the Department of Revenue ensures motorists obtain and keep insurance and found the state's monitoring system could be more effective. In general, the department's staff tests a sample of vehicles to determine insurance status, but auditors found the current system may drop too many vehicles out of the sample, which leaves these vehicles unmonitored, and possibly uninsured.

Data from insurance companies not always accurate

Department staff obtains data from insurance companies to evaluate vehicle owners insurance status. But auditors found this data is not always accurate and the mistakes unnecessarily cause vehicles to be dropped from the monitoring system. Auditors found some of these data mistakes could easily be resolved. Improved accuracy could increase the number of uninsured motorists monitored by the state. (See page 6)

Citizens are not required to prove insurance when tested by state

When the state sends letters to motorists to check insurance status, the motorist is not required to return proof of insurance, such as a copy of an insurance card. State law only requires the motorist to sign a form saying they are insured and provide a policy number and expiration date. The department's April 2004 response verification testing found 12 percent of the motorists reporting they were insured actually were not. (See page 9)

State law excludes a million registered vehicles from insurance monitoring

Insurance status of commercial, fleet or rental vehicles is not required to be reported to the state. As a result, even though there are 5 million registered vehicles in Missouri, only 3.9 million are reported to the state. (See page 11)

Reinstatement fee for uninsured motorists is lowest among 12 states

Missouri only charges $20 to reinstate an uninsured motorist after their first offense, which is the lowest among 12 states contacted, including 6 states which charge more than $100 for a first offense. Legislators dropped reinstatement rates in 1999 apparently to increase reinstatements, but annual reinstatements have instead dropped since the change. (See page 12)