Illegal Immigrants and Auto Insurance
Although an illegal immigrant may now obtain a driver's license legally in only seven states in the US, he may legally purchase auto insurance anywhere. This practice began with a few small insurers, mainly dealing with high risk clients. A few larger insurers, like Progressive, recognizing the mutual benefit, have now started offering policies, especially in states such as California, New York, and Texas where high numbers of illegal immigrants reside.
The Benefit of Insuring Illegal Immigrants
In an effort to combat identity theft and other fraud, the government is making the process of obtaining a driver's license more difficult. Despite that, illegal immigrants, needing to get to and from work, are still driving. With a total illegal immigrant population in the US estimated at between 12 and 20 million, insurance companies are welcoming the increase in customers and are accepting foreign driver's licenses and ID cards in lieu of state issued driver's licenses.
Immigrants who opt for auto insurance are taking responsibility by protecting themselves and other drivers. When stopped by the police, if an illegal immigrant is able to show proof of insurance and current registration, law officers will often overlook the fact that the person has no license. Because illegal immigrants want to keep a relatively low profile, they may not file claims for small accidents, making them a desirable customer.
Opposition to Insuring Illegal Immigrants
Insurers who do offer auto insurance to illegal immigrants may charge them higher rates than those citizens who are here legally. It shows that the buying power of such a large group will make it more difficult for those working to halt the flow of illegals into the country. Opponents fear that offering illegal immigrants auto insurance is just another way we are condoning their breaking the law when they entered the country.
The Future: Growth Vs. Depletion
The Iraq war rages on and opposition is mounting. Illegal immigrants continue to enter our country, finding jobs and settling down while opponents try to stop them. What is similar about these two situations? This – there is no simple solution. Illegal immigrants are perceived as a drain on public institutions such as schools and hospitals, as well as competition for jobs in small businesses. At the same time they are becoming a huge market for major corporations such as credit card, insurance, phone utilities and banks: a market that big business will not ignore. Whether the majority of US citizens oppose it or not, through the actions of companies like Bank of America, who indiscriminately issue credit cards to illegals, or restaurants and farms who hire them under the table, we are bringing the illegal immigrant into the mainstream of American culture and validating the existence of over 600,000 new consumers each year, for better or worse.
