Shuman Roy is an entrepreneur, business owner, and musician. He started RoysNoys, LLC in 2013 as a music production and education service company. He also offers small business consulting and advisory services to help businesses get from start-up mode to turn-key operations. Shuman earned his M.B.A from the Stern School of Business in 2001 and has an undergraduate degree from Manhattan College in ...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joel...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Jul 19, 2021

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Yes, you read that correctly. Insurance companies apparently have a problem with a law that says you have to buy their product.

Apparently there is “broad insurer opposition to state laws that require drivers to buy car insurance,” according to a recent piece on

How could this be?

Basically, car insurance companies believe laws that require drivers to purchase mandatory minimum car insurance coverage don’t work.

This is evidenced by the sheer number of uninsured motorists still present on U.S. roadways.

In fact, 17 percent of drivers admitted to driving without insurance at one point or another.

What are the complaints?

Paperwork and regulation…two common results of the government getting involved in the business.

Insurers are caught in the middle, acting as babysitters for the government, keeping track of which policies are “in-force” for who and on what day.

If an insured’s policy cancels, insurers have to notify the state. In some states, insurers have to determine if an insurance policy was in-force at the time of an accident.

Doesn’t sound like much work, but repeat the task thousands of times a day for individuals who allow their policy to cancel several times during a term and you can see where the headaches begin.

The article also quotes David Snyder, Vice President and Associate General Counsel for the American Insurance Association, who said mandatory car insurance laws are “used as a justification for a lot of intrusive regulations that limit your ability to price for risk.”

This means the government forces drivers to obtain insurance, and as a result, get the keys to the insurer’s house.

And insurance companies have to present their proposed rating structure to the state department of insurance for approval before releasing the products to the public.

In short, car insurance rates that don’t satisfy the regulators don’t “hit the street.”

Tip: Do yourself a favor and opt for both uninsured motorist and underinsured motorist coverage on your auto insurance policy.

At the end of the day, the article highlights the fact that there are tons of people out there driving without car insurance.