PCI Backs Hawaii Legislation to Provide New Affordable Auto Insurance Option

The Property Casualty Insurers Association of America (PCI) said it supports state legislation which would give families an option that could make their automobile insurance more affordable and available, according to Sam Sorich, PCI’s vice president and western regional manager.

The bill, SB 2091, was to considered Wednesday (Feb. 22) by the Hawaii Senate Committee on Commerce, Consumer Protection and Housing.

Sorich explained that under current state law, auto insurance policies have to be purchased for the entire household.

“SB 2091 gives policyholders an opportunity to exclude a named driver from the family’s insurance policy. The bill provides a choice, not a mandate,” said Sorich. “This bill contains sound public policy. That is evidenced by the fact that 41 other states allow consumers to exclude named drivers from policies.”

He noted that the laws in the 41 other states have not resulted in an increase in uninsured drivers. And the laws have not resulted in an increase in the policies that are written in the assigned risk plans that provide coverage for those drivers who cannot find coverage elsewhere.

“PCI supports SB 2091 because we believe it will help families who, because their households include high-risk drivers, may have difficulty finding insurance coverage today. The exclusion of the high-risk driver will cause more insurance companies to compete for the family’s business.

“SB 2091 helps to make auto insurance coverage more available and more affordable for those families who choose the coverage option offered by the bill,” Sorich added.