15-20 percent of drivers
uninsured, study finds

By Mike Yuen
Star-Bulletin

Hawaii's uninsured-motorist problem is only half as bad as what many believed.

That's the conclusion of a state task force examining automobile insurance in Hawaii, following a statewide random-sample audit earlier this year of motor vehicles by the Hawaii Insurers Council, an industry group.

The council pegged the number of uninsured vehicles at 15 percent, far less than the 33 percent many had estimated.

"It is comforting that it is not as high as that," said state Insurance Commissioner Rey Graulty, who heads the three-man task force.

The task force ultimately pegged the number of uninsured motorists at 15-20 percent, after member Tony Takatani noted that 3 percent of drivers had been issued citations last year for operating unregistered vehicles.

According to the task force's data, there are about 827,000 passenger vehicles, including motorcycles and motor scooters, in the state.

Now that his panel has identified the scope of the uninsured-motorist problem, the next step is to rectify the situation in the most cost-efficient way, Graulty said.

That may mean developing a computerized system in which police would try to match the names of insured motorists with those of drivers who are pulled over, Graulty said. If there is no match, it is assumed the driver is uninsured. The potential drawback, though, would be the cost of maintaining such a computer system and ensuring it has up-to-date insurance information, he noted.

Another option: "Pay at the pump," in which auto insurance costs are included whenever a motorist buys gas, guaranteeing that everyone is covered.

The downside is that someone who lives farther from work will have to pay more, Graulty said.

"There are economic consequences," he added. "It would make it more expensive to live in Kapolei than in downtown."

The task force will also be looking at the no-fault system in Quebec, Canada, where coverage is tied to the government's pre-paid health system, Graulty said. Also on the table is whether to make coverage optional. The belief is that drivers with assets to protect will get coverage, while drivers with no assets will not get coverage.