STICKER SHOCK: MAINE’S BURDENSOME VEHICLE INSPECTION MANDATE

EFFECTS OF VEHICLE INSPECTION MANDATES ON INSURANCE RATES

In the past, efforts to repeal Maine’s inspection mandate have been met with warnings that doing so would cause car insurance rates to surge by increasing the frequency of accidents. This claim is easily tested, using comprehensive data from the National Association of Insurance Commissioners, and is plainly false.

Data from 2016 show that the average premium for liability insurance in states that did not have inspections mandates was $517 per year, compared to $548 in states with mandatory inspections. The same dataset shows that out of the 10 most expensive states for liability insurance, five have inspections and five don’t. Out of the 10 most affordable states for liability insurance, three have inspections and seven don’t. Inspection requirements simply do not significantly affect insurance rates.