SafeAuto Insurance Supports New Texas Law Aimed at Reducing the Number of Uninsured Drivers

COLUMBUS, OH--(Marketwire - February 5, 2008) - A new Texas law allows police officers to know immediately if a driver who has been pulled over has the required minimum insurance coverage. The law, which went into effect Jan. 1, 2008, is aimed at detecting uninsured drivers and preventing them from presenting out-of-date or fraudulent proof of insurance.

SafeAuto Insurance Company, a company that specializes in offering state required minimum liability insurance, supports The Texas Financial Responsibility Verification program because it puts fewer people at risk for dealing with the potentially financially devastating after-effects of an auto accident.

"Uninsured drivers pose a threat to every driver on the road. This program will reduce the number of uninsured drivers who put themselves and everyone else at risk, and that is the same mission we have at SafeAuto," said Jon Diamond, president of SafeAuto. "We pioneered the concept of keeping our customers legal for less and this law is simply an extension of that spirit."

The database was built using information supplied by insurers and is being developed by the Texas Department of Public Safety, the Texas Department of Insurance, TxDOT and the Department of Information Resources.

Law enforcement officers will have access to the database, which compares the vehicle information to the documentation held by the insurance company, instead of relying on the proof of insurance cards. Cards can be out of date, lost or invalid. To ensure that drivers' records remain valid, the law requires that insurance companies submit weekly updates to the database.

An estimated 15 to 20 percent of drivers or 4 million vehicles in Texas don't have valid insurance. Uninsured drivers face fines of $175 or more for a first time offense, while other penalties include suspension of the driver's license and vehicle impoundment.

"One of the main reasons drivers go without insurance is cost," Diamond continued. "Many times these drivers are forced to decide between paying their insurance, feeding their families or simply paying rent. That's why we're offering a solution through affordable, state required minimum coverage insurance. By reducing the number of uninsured drivers, auto insurance premiums overall will decrease and the roads will be safer -- and that's what we mean when we say 'Play it Safe!'"

A pilot version of the Texas Financial Responsibility Verification program was launched this month with plans to expand the program statewide by early spring.

Texas joins 30 other states that have initiated insurance database programs.

About SafeAuto

SafeAuto Insurance Company was started in Ohio in 1993. As a provider of state required minimum insurance coverage and serving an overlooked and underserved market, the company quickly expanded into Indiana, Kentucky, Georgia, Pennsylvania, South Carolina, Tennessee, Louisiana, Mississippi, Illinois, Arizona, Oklahoma and Texas. Today, the company provides state required minimum insurance coverage to automobile drivers in 14 states with plans for continued expansion. SafeAuto is a direct-to-consumer automobile insurance company that does not rely on a middleman, which ultimately saves its clients money and allows unparalleled, consistent 24/7 sales and servicing. The company is a pioneer in offering state required specializes in minimum liability insurance as well as complementary collision coverage in every state in which it operates.

For more information visit www.safeauto.com.

Contact Information: Media Contact: Dace de la Foret Paul Werth Associates 614-224-8114, ext. 235