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"Auto insurance fraud has been rampant in many states over the last few years, and there have been numerous efforts to crack down on this type of crime. That includes a recent effort in Cape Coral, Florida, by police to help discover drivers who were operating their vehicles either without insurance at all, or with bogus coverage. If such efforts are successful, insurance agents might be able to help their clients lower the premiums they face for coverage. This effort, being conducted for the third consecutive year by the Cape Coral Police Department, was made in conjunction with more than a dozen major insurance providers, so that they could quickly verify whether the people pulled over around the city actually had coverage when they claimed to, according to a report from the Cape Coral News-Press. By positioning officers at one of the most dangerous intersections in the city, officials were able to verify the information of many drivers who committed moving violations, and made at least one arrest for a person driving on a license suspended for his not having insurance in the past. ""Nobody wants to be hit by an uninsured motorist,"" Ralph Garcia, a special agent with the National Insurance Crime Bureau, told the newspaper. ""Sometimes people take a regular card and modify it. For insurance companies and us, it's not in their best interest."" Why is this harmful? Consumers who are hit by drivers without having personal auto insurance policies place a tremendous burden - through no fault of their own - on coverage providers overall, and that added cost has to be spread among their pool of clients overall to balance things out for the companies. Consequently, many who live in areas with high rates of people going without auto plans may consequently have to pay far greater premiums every year, even if they have spotless driving records themselves. As such, when instances of this kind of accident drop, insurers may be able to reduce rates for drivers across the board, which can be a boon not only to those people, but their insurance agents, who have fewer headaches to deal with, and may be able to see an uptick in business by having more wiggle room to offer lowered rates to buyers who are interested in shopping around for the most affordable coverage available to them."

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