Bill Description: House Bill 770 would increase the minimum property damage liability coverage for motor vehicle insurance, effectively raising insurance rates.
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Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?
House Bill 770 would amend sections 49-117 and 49-1229, Idaho Code, to increase the minimum property damage liability coverage (or indemnity bond) for one accident from $15,000 to $25,000. This regulation affects both insurers, who cannot sell policies below this rate, and customers who cannot purchase a policy below this rate.
As the fiscal note dryly states, “Any impact associated with insurance premium adjustments will occur in the private insurance market and does not affect state finances.”
But when government requires people to purchase something, it’s effectively a tax.
It’s also important to note that the penalty for a first offense of driving without sufficient insurance is an infraction punishable by a fine of $75. A second offense within 5 years is a misdemeanor punishable by a fine of up to $1,000 and up to 6 months’ incarceration.
Failing to increase one’s insurance coverage as required by this bill could subject a driver to these penalties.
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