Local Politics

Bill Would Tag Felony on Drivers With Illegal Plates

Posted May 17, 2007

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— State lawmakers are cracking down on out-of-state drivers who register their cars in North Carolina to save on insurance.

Compared to most other states, car insurance is a bargain in North Carolina. That is attracting people from elsewhere who are willing to break the law for a break on their insurance rates.

State Insurance Commissioner Jim Long said motorists flock to North Carolina from expensive insurance states, such as New Jersey and New York. They give fake local addresses and get cheaper insurance and tags.

"They're coming down here literally by the bus load," Long said.

According to police, at least 39 residents of Dover, N.J., listed the same home outside Raleigh as their bogus address.

"I would venture to say that the only time they were in North Carolina was the day they got their license," Capt. Peter Ugaldi of the Dover Police Department told WBTV, a Charlotte affiliate of WRAL.

Ugaldi said police in Dover have spotted at least 1,000 North Carolina plates in their town in recent years.

A bill that would make such "rate evasion" a felony passed the House Insurance Committee on Thursday and will go before the full House for a vote.

Investigators want the state Division of Motor Vehicles and insurance agents to improve how they verify where people live.

"The goal in all this is to protect the rates being charged to North Carolina drivers by keeping those from other states from buying insurance down here, then going back up north and having wrecks and costing all of us," Long said.

Long also said he believes it's too easy for illegal immigrants to get insurance, license plates and other documents by using fake addresses.


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  • mattatiww May 18, 2007

    AngelEyes that’s interesting, also makes me wonder why dump trucks in NC have no plates at all?

  • AngelEyes May 18, 2007

    I'm still trying to figure out the advantage for the trucking companies to have all of their trailers' tags from Maine...?

  • spazman May 18, 2007

    I got hit by a women with no insurance AND no license The cops let her go to work,DRIVING THE CAR SHE HIT ME WITH.(Rocky Hump)I wouldnt be caught with a NC license

  • Panther May 18, 2007

    You are correct, Michigan has no fault insurance and it’s a disaster. Try and collect from your own insurance company if you have an accident with a no-fault driver. The insurance company will pay you and then call it your fault just to raise your rates to cover their loss. This happen to me, I was rear ended at a stop light and my insurance company socked it to me!

  • 68_polara May 18, 2007

    In reference to Steve's last entry below. What he is referring to is the no-fault insurance system, which as he stated, you buy insurance which will cover your vehicle in an accident. Fault isn't determined because it doesn't matter you pay for your own. It's an interesting concept. Unfortunately it encourages the Neanderthal mentality of driving the largest 4 wheel drive suv/pickup with concrete filled metal pipes for bumpers and not worrying about what happens to the other people on the road. I think Michigan has this system.

  • patriot4liberty May 18, 2007

    If they're going to make it a felony, then they HAVE to make a way for unlicensed but eligible drivers to get their licenses. you cannot insure a vehicle without a license and you can't get a tag without insurance.

    keeping capable drivers off the roads because they lack immigration papers is causing a menace to all of us. LICENSE THOSE THAT CAN DRIVE! Stop playing politics with our safety!

  • Bob3425 May 18, 2007

    Why not just have the insurance state in the policy, if your not a resident of NC, this policy is null in void, unless their serving here in the armed forces. I would think it's in the insurance companies best interest too.

  • nowon_yuno May 18, 2007

    Since this is a driving thread. USE YOUR TURN SIGNALS! I see alot of people with brand new vehicles some of them high priced imports and their turn signals don't work. How can this be?

    /Jesus would use his turn signals.

  • 2late May 18, 2007

    RE headline:"Bill Would Tag Felony on Drivers With Illegal Plates"...should read....."Bill would tag illegal drivers with felony"...not that it would help

  • Steve Crisp May 18, 2007

    Don't know. I've never been in a moving accident so I have never filed a claim. However...

    I have never understood why the insurance system is set up the way it is anyway. Instead of each motorist being required to provide insurance for events that pay for the damages of others, why not just require insurance that will pay for your own damages regardless of what coverage the other guy has? Essentially make everything uninsured motorist coverage. And if someone wants to flaunt the law and not get mandatory coverage, well then they are just out of luck when it comes to fixing their own damages or paying for injury treatment. You buy homeowners, renters, flood, commercial, life, health, and all other insurance to protect yourself from direct injury or loss to yourself. Why not automobile insurance as well? And yes, there are riders that cover things like injury to others, but for the most part insurance is purchased for ones own benefit. Except auto.