It’s amazing what a difference a local law can make. At least that’s the case in the Dallas, Texas area, where some insurance companies are seeing a surge in people buying policies since Dallas officials started enforcing an ordinance where police officers can have uninsured vehicles towed. As of early January, Dallas police said they towed more than three hundred uninsured vehicles.

Dallas police say if an officer stops a vehicle for a traffic violation, or if it is involved in an accident, and the vehicle is determined to be uninsured, officers may decide to have it towed.

That’s good news if you sell insurance in Dallas. Vernon Franko of Insurance Plus said applications for insurance are up 20 percent  in the last three weeks since enforcement of the ordinance started.

“I expect it to continue as people come into compliance,” Franko told the Associated Press in an interview recently.

Franko said people have been buying insurance so they have proof to get their vehicles out of the police impound facility.

After a local TV station, FOX 4, broke the story they received a flood of phone calls from concerned people and insurance agents. According to Sgt. Gil Cerda of the Dallas police department, officers want to make sure vehicles have current proof of insurance as a public safety matter.

“I want to assure everyone that the Dallas Police Department requires a card showing proof of insurance, not necessarily everyone who is driving that vehicle is on that card, but that the vehicle that is on the streets of Dallas has proof of insurance,” Sgt. Cerda told FOX 4.

If someone is borrowing your car, gets pulled over, and is not listed on the insurance policy, Sgt. Cerda said that person would only be cited for the traffic violation and that the vehicle in most cases should not be towed.

So far, Dallas police say they have not received any complaints of improper towing, but say those cases should be reported to their department so they can be addressed quickly.

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Insurance Plus Sees continued rise in applicants due to new tow laws
written by Iplus, April 26, 2009

The City of Dallas has certainly taken a no nonsense approach to enforcing the states Financial Responsibility Laws. Increasing numbers of newly insured drivers are coming into compliance. The Insurance Industry and Law enforcement alike hope to see lower Auto Insurance Rates and a safer driving environment on Texas roads.

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